Financial Daily from THE HINDU group of publications
Saturday, Aug 24, 2002
BULLS were in total command of Fridays' trading activity. Bears were unable to make any impact during the day's trading. The sentiment reading of the tradable counters continues to remain bullish. Bear domination on Monday is likely to neutralise the sentiment reading. On the other hand, the prevailing bullish sentiment is likely to be further strengthened.
Nifty futures recommendation: The August contract opened around previous close and thereafter it went up by 12 points. Bull dominance during the day, left the bears with no opportunity to recover their losses. The August contract closed higher for the week with a bullish note.
The long position in the August contract remained intact. The exit and bearish trigger levels for the August contract are still placed around the same level. In the normal course of trading, the uptrend is likely to continue. However, strong bear move has the potential to reverse the prevailing trend.
Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remain undisturbed. Trading activity in Tata Engg was very hectic on Friday with more than 1,260 trades.
Bear domination on Monday could be a threat to the uptrend in BPCL, Digital, Hindustan Petro and Reliance Industries. On the contrary, all the downtrend counters in the list are likely to be under threat.
Bulls are likely to have opportunity in ITC and Tata Engg. Selling opportunities are likely to exist in BPCL, Digital, Hindustan Petro and Reliance Industries.
Buying in ITC is likely to be the best bet for Monday's trading. The counter is in the downtrend. Its exit and buy levels are placed very close to its last traded price. Bull pressure on Monday is likely to trigger these levels.
Cash segment: The top-10 tradable list remains unchanged. The ranking of the list had a minor change. Digital and Hinduja TMT interchanged their positions.
For those still holding long position in Rolta may do so with the stop loss placed at Rs 93.55.
Except for the downtrend in Satyam Computer, all the other counters in the list are likely to be safe. Bull pressure prevailing in the market has placed the exit and bearish trigger levels quite far away for the tradable counters.
Buying opportunities are likely to exist in Geometric Soft, Hinduja TMT, Satyam Computer and VisualSoft. The best among the above is likely to be in Satyam Computer. The counter is in the downtrend. Its exit and bullish trigger levels are placed quite closer to its current level. Bull move on Monday has the potential to reverse the prevailing downtrend in the 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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