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Saturday, 15 December 2007

Buying in Reliance Industries is the best bet

Friday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bearish. Bull move on Monday is likely to change the sentiment reading in their favour.

On the contrary, the current sentiment reading is likely to be strengthened with additional counters.

Nifty Futures

The December contract opened with a bull gap of around 43 points from its previous close. The December contract moved within a range of around 92 points and closed with a gain of around 8 points from its previous close.

The long position in the December Nifty contract is exited and initiated a fresh downtrend. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Monday’s trading activity.

Stock Futures

The composition and the ranking of the top-10 list had minor changes.

ONGC made its way to top-10 list pushing out MTNL. Reliance Industries and Reliance Capital interchanged their positions. The long exit level for Hindalco is placed at 209.20.

Except IDBI and Tata Steel all other counters in the top-10 list are in downtrend. All the uptrend counters are likely to be under threat for Monday’s trading.

On the other hand, bull move on Monday is likely to terminate all the downtrend counters except ICICI Bank. Buying opportunities are likely to exist in Reliance Energy, Reliance Industries, Reliance Capital, NTPC, SBI, GAIL and ONGC. Selling opportunities are likely to exist in IDBI and Tata Steel.

The best among the above is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Monday is likely to reverse the trend in this counter.

Cash Segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. ICICI Bank and Reliance Capital interchanged their positions. The short exit level for Suzlon is placed at 1985.95.

Except IDBI all other counters in the top-10 list are in downtrend. The uptrend counter IDBI is likely to be under threat for Monday’s trading. On the other hand, bull move on Monday is likely to terminate all the downtrend counters except ICICI Bank.

Buying opportunities are likely to exist in all the downtrend counters except ICICI Bank. A lone selling opportunity is likely to exist in IDBI.

The best among the above is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Monday is likely to reverse the trend in this counter.

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