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Wednesday, Aug 31, 2005

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Markets - Technical Analysis

Bull domination

K. Premkumar

TUESDAY'S market action witnessed bulls in total command. The day's market action resulted in turning the sentiment reading to mildly bullish.

Bear move on Wednesday has the potential to change the sentiment reading in their favour. On the contrary, the prevailing sentiment reading is likely to be strengthened.

Click here for table

Nifty futures recommendation: September contract gapped up by 7 points and further moved up by another 34 points. Bears could not make any impact on the day's trading activity.

The September contract moved within a band of 41 points. It closed with a gain of around 40 points from the Monday's close.

Bull domination during Tuesday's trading led to the reversal of the short position in September contract.

The short trade had a loss of around 34 points.

In the normal course of Wednesday's trading, the initiated long position is likely to be intact.

The short entry level is also placed quite far away and is unlikely to be triggered during Wednesday.

Stock futures recommendation: The composition as well as the ranking of the top 10 tradable list remains unchanged. Top three traded counters were Reliance, Satyam Computer and SRF.

All the uptrend counters in the list are likely to be under threat for Wednesday's trading.

Except for Bank of India, all the other downtrend counters in the list are likely to be terminated.

Buying opportunities are likely to exist among four counters and selling opportunities are likely to exist in three counters for Wednesday's trading.

The best is likely to be buying in ICICI Bank. This counter is in sideways mode. Bull domination on Wednesday is likely to initiate a fresh uptrend in this counter.

Cash segment: There were no changes to the top 10 tradable list.

The ranking of the list too remains unchanged. The lone downtrend counter is likely to be under threat for Wednesday's trading.

Bear domination on Wednesday is likely to terminate all the uptrend counters in the list.

Six opportunities on the buy side and three opportunities on the sell side are likely to exist for Wednesday's trading.

Buying in Tata Steel is likely to be the best bet for Wednesday's trading. This counter is in sideways. Bull pressure on Wednesday is likely to trigger the uptrend in Tata Steel.

(The table could not be carried due to technical problems.)

The author is a technical analyst and fund management consultant.

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