Financial Daily from THE HINDU group of publications
Tuesday, Dec 31, 2002
Financial Daily from THE HINDU group of publications Tuesday, Dec 31, 2002 |
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Markets
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Technical Analysis Bear domination K. Premkumar
BEARS were in control of Monday's trading activity. Bulls were unable to make any impact during the day's trading. Monday's market reaction resulted in reducing the bull count by a substantial margin. The market sentiment reading of the tradable counters stands neutral. Bear domination on Tuesday is likely to change the sentiment reading in its favour. On the other hand, it is likely to turn bullish. Nifty futures recommendation: The near month January contract opened with a bear gap of 3 points and went further down by another 12 points. During the wee hours of the day's trading, bulls managed to make a partial recovery. January contract closed with a loss of 8 points with respect to Friday's close. Bear domination led to the reversal of the uptrend in the January contract. The long trade exited with a loss of 6 points. The exit level for the downtrend is placed in the danger zone. Bullish trigger level for the January contract is also placed closer to its last traded value. Bull domination on Tuesday has the potential to trigger these levels. Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. Reliance Industries and Tata Engg interchanged their positions. The top three traded counters in this segment were Satyam Computer, Hindustan Petro and Reliance Industries. Bull domination on Tuesday is likely to terminate the downtrend in BPCL and Satyam Computer. On the other hand, the uptrend in Tata Steel is likely to be under threat. Bulls are likely to have opportunity in five counters. Selling opportunities are likely to exist in Digital, Infosys, Reliance Industries and State Bank. The best bet is likely to be the buying in Digital. Its bullish trigger level is placed quite closer to its current level. Bull move on Tuesday is likely to trigger this level. Cash segment: The composition of the top-10 tradable list had a change. NIIT gained entry with the exit of State Bank. However, the ranking of the list remains intact. The exit level for the short position in State Bank is placed at Rs 286.40. None of the counters in the list is in the uptrend. Bull domination on Tuesday could be a threat to the prevailing downtrend counters in the list. Traders are left with ample opportunities for Tuesday's trading. Buying opportunities are likely to exist in five counters. On the other hand, four selling opportunities are likely to exist. Buying in Wipro is likely to be the best bet for Tuesday's trading. This counter is in the sideways mode. Its buy level is placed very close to its last traded price. Bull pressure on Tuesday 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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