Financial Daily from THE HINDU group of publications
Wednesday, Oct 19, 2005
Financial Daily from THE HINDU group of publications Wednesday, Oct 19, 2005 |
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Markets
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Technical Analysis Bears prevail K. Premkumar
THE sentiment reading of the tradable counters continues to remain bearish. Bull domination on Wednesday has the potential to neutralise the sentiment reading. On the contrary, the prevailing bearish sentiment is likely to be further strengthened. Nifty futures recommendation: The October month contract opened with a bull gap of around 6 points and went further up by another 24 points. However, bulls could not capitalise their initial momentum and gave way for bears. The October month contract moved within a range of 70 points making an intraday low of 2445.20. It closed with a loss of 39 points from its previous close. The short position in the October month contract remains intact. The exit and buy levels for the October month contract are still placed quite far away. In the normal course of trading these levels are unlikely to be triggered. Stock futures recommendation: The composition of the list had no changes. The ranking of the top-ten tradable list had minor changes. State Bank and Tata Steel inter-changed their position. Tata motors moved to fourth position and Infosys moved to fifth position. The top three tradable counters in this segment were Infosys, Reliance and State Bank. The two uptrend counters IPCL and Hind Lever are likely to be under threat for Wednesday's trading. On the other hand, the lone down trend counter ONGC is likely to be terminated. For Wednesday's trading, there are no buying opportunities. Selling opportunities are likely to exist in six counters in the list. The best for Wednesday's trading is likely to be selling in Reliance. This counter is in sideways mode. Bear pressure on Wednesday is likely to initiate fresh downtrend in this counter. Cash segment: The Composition and the ranking of the top-10 tradable list had minor changes. India Infoline moved out of the top-10 tradable list and gave way to State Bank. Tata Steel moved to ninth position from tenth position. The exit level for India Infoline is placed at 130.50. For Wednesday's trading, the uptrend in Sesa Goa and State Bank are likely to be under threat. On the contrary, the lone down trend counter ITC Ltd is likely to be terminated. Buying opportunities are likely to exist in Mcdowell and ITC Ltd. Reliance Capital, Satyam and State Bank are likely to be the selling opportunities for Wednesday's trading. The best for Wednesday's trading is likely to be the selling in Satyam. Bear pressure on Wednesday is likely to initiate the downtrend in this counter. (Note: All price levels refer to the absolute value of the shares traded on the NSE. There is risk of loss in trading.)
The author is a technical analyst and fund management consultant.
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