• PAGE ONE
• INDEX
• HOME

Sideways movement

K. Premkumar

THURSDAY'S trading activity too witnessed narrow movement in the index. It moved within a close band of 13 points. Neither the bulls nor bears could gain from the day's trading. The Nifty closed around Wednesday's last traded value. The sideways trend in the index continued on Thursday. The market sentiment reading of the tradable counters also remains unchanged.

The bullish and bearish trigger levels for the index are equally poised from the last traded value. Both the bulls and the bears have a fair chance to prove their might on Friday. It would be interesting to watch as to who takes up the initiative on Frid ay. Bull domination on Friday has the potential to weaken the prevailing bearish sentiment in the market. On the contrary, it is likely to remain the same.

Index Futures Recommendation: The movement in the futures segment was rangebound. The nearby July futures contract moved within a very close band of nine points. It closed for the day exactly around Wednesday's last traded value.

The dull movement during the day left the sideways trend in both the styles of trading intact. However, this helped to move the bullish trigger levels in both the target and non-target-based style of trading quite closer to its current level. Bearish tri gger levels remains unchanged for both the styles of trading. If the bulls were to dominate on Friday, an uptrend is likely to be initiated in both the styles of trading.

Scrip Recommendation: There were no new entries or exits to the top-20 tradable list. The ranking of the top-20 list underwent some changes.

For Friday, the prevailing bearish sentiment is likely to continue in the normal course of trading. Bull domination has the potential to neutralise the prevailing sentiment in the market. On the other hand, it is likely to remain the same.

Bear domination on Friday could be a threat to the following uptrend counters -- ACC and State Bank of India. On the other hand, the downtrend in Infosys, L&T, Reliance Industries, Satyam Computers and Zee Tele are likely to be under threat.

For Friday, buying opportunities are likely to exist in Digital and Zee Tele. A lone selling opportunity is likely to exist in ACC.

The best among the above is likely to be the selling in ACC. The counter is at present in the uptrend. Its exit and sell trigger levels are placed quite closer to its last traded value. Bear pressure on Friday 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.