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K. Premkumar

FRIDAY's trading activity was totally dominated by the bears. However, bulls managed to initiate uptrend in few counters. This has resulted in changing the sentiment in favour of the bulls. In the normal course of trading on Monday, the prevailing sentiment is likely to continue. Bear domination on Monday is likely to reduce the bull count almost to zero.

Nifty futures recommendation: The movement in the January contract was around 25 points. The January contract closed lower for the week with a loss of around 22 points.

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The uptrend in the January contract remained intact. However, this is still in the danger zone. Its exit level is placed just one point below Thursday's close. Bearish trigger level is also placed closer to its current level. Bear move on Monday, has the potential to terminate and initiate a fresh downtrend in the January contract.

Stock futures recommendation: The composition of the top-10 tradable counters remained intact. The ranking of the list underwent a change. ACC and Sterlite Optical interchanged their position.

None of the counters in the list are in the downtrend. Except Tata Engg, all the counters in the list are likely to be under threat from the bears. Bulls are unlikely to have any opportunity for Monday's trading. Selling opportunities are likely to exist in Dr Reddy's, L&T, Reliance Petro and Sterlite Optical. The best for Monday's trading is likely to be Sterlite Optical. This counter is in the sideways trend. Its bearish trigger level is placed closer to its last quoted price. Bear pressure on Monday is likely to initiate a fresh downtrend in this counter.

Cash segment: There were no new entries or exits to the top-10 tradable counters in the cash segment. However, the ranking of the list had a change. Infosys moved to the fifth position followed by Wipro.

Bear domination on Monday is likely to terminate all the uptrend counters in the list. For Monday's trading, traders are left with a lone opportunity. This is likely to exist on the short side of HCL Tech. This counter is presently in the uptrend. Its exit and bearish trigger levels are placed quite closer to its current level. Bear move on Monday has the potential to trigger these levels.

(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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