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K. Premkumar

BEARS exerted further pressure on Friday's trading and restricted the bulls from making any recovery. The sentiment reading of the tradable counters continues to remain bearish. In case of bull domination on Monday, the bear count is likely to reduced by a considerable margin. On the contrary, the prevailing sentiment is likely to continue with added strength.

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Nifty futures recommendation: March contract moved within a band of 10 points. Bears managed to gain marginally from the day's trading. March contract closed with a loss of 3 points with respect to previous close. The downtrend in the March contract remained intact. However, this is in the danger zone as its exit is placed just six points away from its current level. Bullish trigger level is still placed far away and this is unlikely to be triggered on Monday.

Stock futures recommendation: The composition of the top-10 counters had a change. Ranbaxy gained entry with the exit of Reliance Petro. The ranking of the list too had some changes. Reliance Industries moved to the fourth position and Sterlite Optical to the eighth position. The exit level for the downtrend in Reliance Petro and State Bank is placed at Rs 26.90 and Rs 229.40 respectively.

Except for Satyam Computer, all the other downtrend counters are likely to be under threat. Bears are likely to have opportunity in Digital and Ranbaxy. Buying opportunities are likely to exist in Infosys, Ranbaxy and Reliance Industries. Selling in Ranbaxy is likely to be the best for Monday's trading. The counter is in the sideways mode. Its bearish trigger level is placed closer to its last traded price. Bear domination on Monday has the potential to initiate a fresh downtrend in the counter.

Cash segment: The top-10 tradable counters in this segment underwent a change. Mastek gained entry with the exit of Wipro. However, the ranking of the list remained intact.

The prevailing downtrend counters — Hindustan Petro, Polaris Soft and Reliance Industries — are likely to be under threat from the bulls. On the other hand, the uptrend in Aftek Infosys is likely to be under threat. Traders holding positions in the above counters will have to be cautious.

For Monday, buying opportunities are likely to exist in Infosys and Reliance Industries. Selling opportunities are likely to exist in Digital and Mastek. The best bet for Monday's trading is likely to be the buying in Reliance Industries. The counter is in the downtrend. Its exit and bullish trigger levels are placed quite closer to its current level. Bull move on Monday is likely 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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