Financial Daily from THE HINDU group of publications
Thursday, Mar 27, 2003
Financial Daily from THE HINDU group of publications Thursday, Mar 27, 2003 |
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Markets
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Technical Analysis Narrow move K. Premkumar
WEDNESDAY's trading activity witnessed narrow movement. Bulls were successful in terminating most of the downtrend counters in the tradable list. The market sentiment reading of the tradable counters stands neutral. Bull domination on Thursday is likely to change the sentiment reading in its favour. On the contrary, the sentiment reading is likely to turn bearish. Nifty futures recommendation: During the open March contract gained seven points. Later on, bears made a strong comeback and recouped most of their losses. The March contract moved within a close band of 8 points. It closed one point above Tuesday's close. Bulls were successful to the extent of terminating the downtrend in the March contract. The short trade exited with a minimal profit of 5 points. Fresh entry levels are given for the April contract. Bullish trigger level is placed quite closer to its current level. Bull domination on Thursday has the potential to initiate the uptrend in the April contract. Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remain intact. Satyam Computer continues to dominate the trading activity in this segment followed by Infosys and Reliance Industries. Most of the counters in the list are in the sideways mode. Both the uptrend counters Digital and Infosys are likely to be under threat. Thursday being the last day for the March contract, fresh entry levels for all the contracts are given for April contract. Traders are left with ample opportunities for Thursday's trading. Seven opportunities are likely to exist on either side of trading. The best bet is likely to be the buying in State Bank. Its buy level is placed very close to its last traded price. Bull pressure on Thursday is likely to trigger this level. Cash segment: The composition as well as the ranking of the top-10 tradable list remain undisturbed. Bear domination on Thursday is likely to terminate the uptrend in Infosys. The prevailing downtrend counters in list are likely to be safe. Bears are likely to have opportunity in five counters. Buying opportunities are likely to exist in four counters. Selling in Infosys is likely to be the best bet for Thursday's trading. This counter is in the uptrend. Its exit and bearish trigger levels are placed closer to its current level. Bear move on Thursday has the potential to reverse the prevailing uptrend 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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