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Saturday, Feb 23, 2002

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Bull domination

K. Premkumar

DURING the opening hour of Friday's trading, bears exerted pressure but failed to sustain it. Bulls made a strong come back to end up the day with substantial gains after wiping out their losses. However, the sentiment reading of the tradable counters continues to remain neutral. Bull domination on Monday is likely to change the sentiment in their favour. On the other hand, it is likely to change in favour of the bears.

Nifty futures recommendation: The near month February contract opened with a bear gap of two points and went further by another 4 points. Later on, the bulls made a smart recovery and recouped their losses. The movement in the February contract was around 20 points. It closed higher with a gain of 15 points with respect to Thursday's close.

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The long position in the February contract survived. Its exit and bearish trigger levels are placed below day's low. In the normal course of trading on Monday, the uptrend is likely to continue. Bear domination is likely to reverse the prevailing uptrend.

Stock futures recommendation: The composition and the ranking of the top-10 tradable counters remained undisturbed. Satyam Computer, Tata Steel and ICICI were the top three traded counters.

None of the counters in the list are in the uptrend. Bull domination on Monday is likely to terminate the downtrend in Infosys and Reliance Industries. Buying opportunities are likely to exist in BHEL, Digital, MTNL, Reliance Industries, Satyam Computer and Tata Engg. Selling opportunities are likely to exist in Digital, MTNL and State Bank of India.

The best bet for Monday's trading is likely to be the selling in State Bank. The counter is in the sideways mode. Its bearish trigger level is placed closer to its last traded price. Bear domination is likely to initiate a fresh downtrend in this counter.

Cash segment: The top-10 tradable counters in the cash segment remain unchanged. The ranking of the list underwent a change. GTL and NIIT interchanged their positions.

The lone uptrend counter - Wipro - is likely to be safe. The downtrend counters- GTL, HCL Tech, NIIT and Polaris Soft are likely to be under threat.

For Monday, bulls are likely to have opportunity in IBP Co and Zee Tele. Selling opportunities are likely to exist in Infosys and IBP Co. The best among them is likely to be the buying in IBP Co. Bulls had failed to initiate the uptrend in this counter for the past two trading days. Its buy level is still placed very close to its closing price. Bull move on Monday is likely to initiate 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 Chennai-based technical analyst and fund management consultant.

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