Financial Daily from THE HINDU group of publications
Saturday, Mar 08, 2003
Financial Daily from THE HINDU group of publications Saturday, Mar 08, 2003 |
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Markets
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Technical Analysis Bears tighten grip K. Premkumar
BEARS were in total control of Friday's trading activity. Their dominance for the third successive trading day left the bulls stranded. The market sentiment reading of the tradable counters stands strongly bearish with no uptrend counters. Bull domination on Monday is likely to neutralise the prevailing sentiment reading. On the other hand, the prevailing sentiment is likely to continue with a slight change in its value. Nifty futures recommendation: The near month March contract opened one point below the previous close and went further down by another 12 points. Bulls were unable to make any impact during the day's trading. The March contract closed for the week with a loss of 10 points with respect to Thursday's close. The downtrend in the March contract was left undisturbed. The exit and bullish trigger levels for the March contract are placed quite far away. These levels are unlikely to be triggered on Monday. Stock futures recommendation: The composition of the top-10 tradable list underwent a change. BHEL gained entry with the exit of Polaris Soft. The ranking of the list remains intact. Satyam Computer continues to dominate the trading activity in this segment followed by Reliance Industries and Infosys. The exit level for the downtrend in MTNL and Polaris Soft is placed at Rs 103.85 and Rs 139.15 respectively. All the top-10 counters in the list are in the downtrend. For Monday, most of the prevailing downtrend counters are likely to be under threat. Buying opportunities are likely to exist in BHEL, Digital, State Bank and Tata Engg. The best among the above is likely to be Tata Engg. Its exit and bullish trigger levels are placed closer to its current level. Bull move on Monday has the potential to reverse the prevailing downtrend in the counter. Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a change. Hughes Soft moved to the eighth position followed by Reliance Industries. Except for Hughes Soft, all the other counters in the list are in the downtrend. Bull domination on Monday could be a threat to most of the downtrend counters in the tradable list. Traders are left with limited opportunities for Monday's trading. Buying opportunities are likely to exist in Digital and Reliance Industries. A lone selling opportunity is likely to exist in Hughes Soft. The best bet for Monday's trading is likely to be Hughes Soft. Its bearish trigger level is placed very close to its last traded price. Bear pressure on Monday is likely to initiate the 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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