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Bulls march ahead

K. Premkumar

FOR the second successive trading day, the bulls were in total control of the market on Thursday. The bears were left stranded. The movement in Nifty was around 19 points. It closed with a gain of 15 points with respect to Wednesday's close. The sent iment of the market continues to remain bullish.

The prevailing uptrend in the index is unlikely to be disturbed on Friday. Its exit and bearish trigger levels are placed quite far away from its current level. Irrespective of bull or bear domination on Friday, the prevailing bullish sentiment is likel y to continue.

Index futures recommendation: Bulls dominated the day's proceedings in the futures segment. The nearby October contract opened with a bull gap of around 5 points and went further by another 15 points. The bears were unable to make any recovery during the day. The October contract closed with a gain of around 18 points with respect to previous close.

The day's move helped to reach the target of 945.00 for the long position in the target based style of trading. The trade exited with a profit of around 36 points. The exit level for the uptrend in the non-target based style of trading and the bearish trigger levels in both the styles of trading are placed quite far away from its last traded value.

Scrip recommendation: There were no new entries or exits to the top-20 tradable list. The ranking in the lower order of the list had a few changes. ITC regained entry to the top-10 with the exit of Hughes Soft.

The market sentiment reading of the top-20 tradable counters remained bullish. This is likely to continue on Friday also. Thus indicating a strong undercurrent in favour of the bulls.

Bull pressure in the market has placed the exit and bearish trigger levels for the tradable counters quite far away from its last quoted price.

For Friday, a lone opportunity is likely to exist on the long side of L&T. This counter is currently in the sideways mode. Its buy level is placed quite closer to its last quoted price. Further bull pressure on Friday, has the potential to initiate a fr esh 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.