Date:25/08/2006 URL: http://www.thehindubusinessline.com/2006/08/25/stories/2006082502841500.htm

Back Bull domination

K. Premkumar

Bulls dominated over Thursday's trading activity. However, the sentiment reading of the tradable counters remains bearish. Bull move on Friday is likely to neutralise the sentiment reading in its favour.

On the other hand, the prevailing bearish sentiment is likely to be further strengthened.

Nifty futures

The August month contract opened with a bear gap of around 12 points. However, bears could not capitalise on the initial momentum. The August contract moved with in a range of around 85 points making an intraday high of 3388.70. It closed with a gain of around 54 points from its previous close.

The short position in the August contract exited and entered long. Both the long exit and short entry levels are placed quite far away from its last traded price.

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In the normal course of trading these levels are unlikely to be triggered during Friday.

Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Bajaj Auto and Tata Motors moved up to sixth and ninth positions where as Satyam and Tata Steel moved down to seventh and ninth positions respectively.

The top-3 tradable counters in this segment were Reliance, Sterlite and Tata Steel.

All the counters in the top-10 tradable list are likely to be under threat for Friday's trading. There are ample opportunities on the bull side and three opportunities on the sell side for Friday's trading. The best is likely to be buying in i-flex Solutions. This counter is in down trend. Bull move on Friday is likely to reverse the existing trend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. All the uptrend and downtrend counters in the list are likely to be under threat for Friday's trading. There are ample opportunities on the buy side and three opportunities on the sell side for Friday's trading.

The best is likely to be buying in Satyam. This counter is in side ways mode. Bull move on Friday 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.