Date:21/09/2006 URL: http://www.thehindubusinessline.com/2006/09/21/stories/2006092104711500.htm

Back Bull domination

K. Premkumar

Bulls dominated Wednesday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull move on Thursday is likely to change the sentiment reading in their favour. On the other hand, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

Nifty Futures Recommendation

The September month contract opened with a bear gap of around 35 points from its previous close. However, bears could not capitalise on their initial momentum and gave way to bulls. September month contract moved within a range of around 103 points making an intra-day high of 3,516. It closed with a gain of around 68 points from its previous close.

The short position in the September month contract remains intact. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Thursday's trading.

Stock Futures

The composition and ranking of the top-10 tradable list had minor changes. ONGC and Reliance Energy went out of the list and gave way to ACC and Bajaj Auto. Bajaj Auto and ACC occupied ninth and tenth positions respectively. BHEL, State Bank of India, Infosys and Satyam moved up in the ranking while Tata Motors and Tata Steel moved down. The top-3 tradable counters in this segment were Reliance, ICICI and Tata Steel. The exit levels for ONGC and Reliance Energy are placed at 1,140.05 and 465.05 respectively.

Most of the counters in the top-10 tradable list are in downtrend. All the counters in the list are likely to be under threat for Thursday's trading. There are ample buying opportunities and two selling opportunities for Thursday's trading. The best is likely to be buying in Maruti. This counter is in downtrend. Bull move on Thursday 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. Most of the counters in the list are in downtrend. All the downtrend counters are likely to be under threat for Thursday's trading. On the other hand, the lone uptrend counter State Bank of India is likely to be terminated. There are ample buying opportunities and two selling opportunities for Thursday's trading. The best is likely to be buying in ITC. This counter is in downtrend. Bull move on Thursday 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.