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Friday, July 20, 2001

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Mild bear domination

K. Premkumar

THE bears dominated Thursday's trading till the mid-session. During the close, the bulls managed to recover partially. The intra-day movement in Nifty was around 12 points. It closed with a loss of six points with respect to Wednesday's close. The tren d of the index continued to be in the sideways for the second calendar day. The market sentiment reading stands in favour of the bears.

The sideways trend in the index is likely to continue on Friday. However, strong bull domination has the potential to initiate a fresh uptrend in the index. Bearish trigger level is still placed quite far away and is unlikely to be triggered. The prevail ing bearish sentiment is likely to continue irrespective of a bull or bear move.

Index futures recommendation: The movement in the futures segment was range-bound. The nearby July future contract moved within a band of 10 points. It closed with a gain of four points with respect to Wednesday's close.

The range-bound movement had no impact on the recommended levels. Bull domination on Friday has the potential to terminate the downtrend in both the target and non-target based style of trading. Its exit level is placed at 1099.05, which is quite close to its current level.

Scrip recommendation: There were no new entries or exits to the top-20 list. The ranking of the list also remains unchanged.

The sentiment reading of the top-20 tradable counters remains bearish. Irrespective of a bull or bear move on Friday, the prevailing sentiment is likely to continue.

For Friday, the uptrend in Hind Lever is likely to be under threat. The other counters in the list are likely to be safe.

Traders are left with limited opportunities for Friday's trading. There is unlikely to be any opportunity on the sell side. Buying opportunities are likely to exist in ACC and Infosys. Between the two, the best bet for Friday's trading is likely to be Infosys. This counter is at present in the sideways mode. The closing price of this counter is very close to its buy level. Bull domination on Friday is likely to initiate a fresh 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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