The Hindu Business Line : Bull domination

Bulls dominated over Friday's trading activity. However, the sentiment reading of the tradable counters remains neutral. Bull move on Monday is likely to change the sentiment reading to bullish. On the other hand, it is likely to turn bearish.

Nifty futures recommendation

The September month contract opened with a bull gap of around 4 points from its previous close.

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The September month contract moved within a range of around 24 points making an intra-day high of 3434. It closed with a gain of around 28 points from its previous close.

The short position in the September month contract remains intact. Both the short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during trading on Monday.

Futures Recommendation

The composition and ranking of the top-10 tradable list had minor changes. Bajaj Auto, Tata Motors and ACC gave way to IPCL, ONGC and Ranbaxy.

SBI and Infosys moved up while Reliance moved down in the ranking. The top-3 tradable counters in this segment were Reliance, Tata Steel and Reliance Capital. The exit levels for Bajaj Auto and ACC are placed at 2696.05 and 914.95 respectively.

Most of the counters are in sideways mode. There are two uptrend and three downtrend counters in the top-10 tradable list.

Both the uptrend and downtrend counters are likely to be under threat for Monday's trading. Ample opportunities exist on either side for Monday's trading. The best is likely to be the buying in IPCL. This counter is in sideways mode. Bull move on Monday is likely to trigger the uptrend in this counter.

Cash Segment

The composition and the ranking of the top-10 tradable list had no changes. There are five uptrend and two downtrend counters in the top-10 tradable list. Both the uptrend and downtrend counters are likely to be under threat for Monday's trading.

There are ample opportunities on either side for Monday's trading. The best is likely to be buying in Reliance Industries. This counter is in sideways mode. Bull move on Monday is likely to trigger the uptrend 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.