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Wednesday, Feb 20, 2002

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Bear domination

K. Premkumar

BEARS were in total control of Tuesday's trading activity. Bulls were unable to extend their pressure on the day's trading. The market sentiment reading of the tradable counters remains neutral. Bull domination on Wednesday is likely to change the sentiment in favour of the bulls. Otherwise, the prevailing sentiment is likely to continue.

Nifty futures recommendation: The movement in near month February contract was around 17 points. Bulls were unable to make any impact during the day's trading. February contract closed lower capitalising the day's entire move.

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The prevailing uptrend in the February contract is likely to continue on Wednesday. Its exit and bearish trigger levels are still placed far away from its current level. These levels are unlikely to be triggered on Wednesday.

Stock futures recommendation: The top-10 tradable counters in the futures segment underwent a change. BHEL gained entry with the exit of Reliance Petro. The ranking of the list remains the same with no major changes. Satyam Computer continues to remain as the top traded counter in the stock futures segment, followed by Reliance Industries and Hindustan Petro.

The lone uptrend counter — Hindustan Petro — is likely to be under threat from the bears. On the other hand, the downtrend in State Bank of India is likely to be under threat. Bulls are likely to have opportunity in Digital, Reliance Industries and Satyam Computer. Selling opportunities are likely to exist in Infosys, MTNL and Reliance Industries. Selling in MTNL is likely to be the best for Wednesday's trading. Its bearish trigger level is placed closer to its last traded price. Bear pressure on Wednesday is likely to initiate a fresh downtrend in this counter.

Cash segment: The composition of the top-10 tradable counters in the cash segment remained intact. The ranking of the list underwent a few changes. Digital and Infosys interchanged their positions and Zee Tele moved to the seventh position.

Except for the uptrend in NIIT, the other uptrend counters are likely to be under threat. The lone downtrend counter - IBP Co is also likely to under threat from the bulls. Buying opportunities are likely to exist in Satyam Computer and Wipro. Selling opportunities are likely to exist in Infosys and Wipro.

The best among them is likely to be the selling in Infosys. This counter is in the sideways mode. Its sell level is placed quite closer to its closing price. Bear move 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 Chennai-based technical analyst and fund management consultant.

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