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K. Premkumar

BEARS dominated the initial hours of Friday's trading. During the close, bulls made a strong comeback to recover their day's losses. The market sentiment reading of the tradable counters remains bearish. Bull domination on Monday is likely to reduce the bear count by a considerable margin. On the contrary, the prevailing sentiment is likely to continue with a slight change in its value.

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Nifty futures recommendation: The May month future contract opened with a bear gap of 2 points and went further down by another 7 points. Thereafter, bulls made a smart recovery to recoup their losses. The intra-day movement in the May contract was around 10 points. Neither the bulls nor the bears could gain from the day's trading.

The day's move had no impact on the recommended levels. In the normal course of trading on Monday, the downtrend is likely to continue. However, bull domination is likely to terminate the downtrend. Bullish trigger level for the May contract remains unchanged and this is unlikely to be triggered on Monday.

Stock futures recommendation: There were no new entries or exits to the top- tradable list. The ranking of the list too remains the same. Trading activity in BPCL and Hindustan Petro was quite impressive. Satyam Computer continues to dominate the trading activity in this segment followed by Hindustan Petro and Reliance Industries.

None of the counters in the tradable list are in the uptrend. The prevailing downtrend in Infosys, Ranbaxy and Tata Engg is likely to be under threat. So, traders holding positions in the above counters will have to be cautious. Traders are left with a lone opportunity for Monday's trading. This is likely to exist on the short side of Reliance Industries. The counter is in the sideways mode. Its bearish trigger level is placed closer to its current level. Bear domination on Monday is likely to initiate a fresh downtrend in the counter.

Cash segment: The composition of the top-10 tradable counters in the cash segment remained unchanged. The ranking of the list had a change. NIIT moved to the second position followed by GTL.

Bull domination on Monday could be a threat to the downtrend in Infosys, Polaris Soft and SSIL. The lone uptrend counter Rolta is likely to be safe.

For Monday, a lone opportunity is likely to exist on the long side of GTL. Its buy level is placed quite closer to its last traded price. Bull move on Monday is likely to trigger this level.

(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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