Date:05/09/2006 URL: http://www.thehindubusinessline.com/2006/09/05/stories/2006090502181500.htm

Back Bulls prevail

K. Premkumar

Bulls prevailed over Monday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Tuesday is likely to change the sentiment reading to bearish. On the other hand, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty Futures Recommendation

The September month contract opened with a bull gap of around 10 points from its previous close. The September month contract moved within a range of around 43 points making an intra-day high of 3484.30. It closed with a gain of around 46 points from its previous close.

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The short position in the September month contract exited and entered long. Both the long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during trading on Tuesday.

Futures Recommendation

The composition and ranking of the top-10 tradable list had minor changes. Ranbaxy, Maruti and IPCL gave way to Bajaj Auto, Satyam and REL. Reliance and BHEL moved up, while State Bank of India, Tata Steel, ONGC and i-flex moved down in the ranking. The top-3 tradable counters in this segment were Reliance, Reliance Capital and Tata Steel. The exit levels for ACC, Ranbaxy, Maruti and IPCL are placed at 921.95, 415.95, 875.95 and 304.95 respectively.

All the counters in the top-10 tradable list are in uptrend. All the uptrend counters are likely to be under threat for Tuesday's trading. There are ample selling opportunities for Tuesday's trading. The best is likely to be selling in i-flex. This counter is in uptrend. Bear move on Tuesday is likely to trigger the downtrend in this counter.

Cash Segment

The composition and the ranking of the top-10 tradable list had no changes. All the counters in the top-10 tradable list are in uptrend and are likely to be under threat for Tuesday's trading. There are ample selling opportunities for Tuesday's trading. The best is likely to be selling in Reliance Ind. This counter is in uptrend. Bear move on Tuesday is likely to reverse the existing trend 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.