The Hindu Business Line : Bear domination

Nifty futures recommendation: During the open, the September month contract gained four points. Bulls failed to capitalise on it as they yielded to bear pressure.

The September contract moved within a band of 40 points.

It closed with a loss of 32 points with respect to Wednesday's close.

Bear move during the day led to the termination of the uptrend in the September contract. The long trade exited with a loss of 41 points.

Bearish trigger level is now placed very close to its current level. Bear pressure on Friday is likely to trigger this level. Bullish trigger level for the September contract is placed quite far away.

Stock futures recommendation: The composition as well as the ranking in the top 10 tradable list remains intact.

The top three traded counters in this segment were Satyam Computer, Reliance Industries and State Bank of India.

Except for the uptrend in CNX IT, all other counters in the list are likely to be safe.

Buying opportunities are unlikely to exist for Friday's trading.

Selling opportunities are likely to exist in BPCL, Ranbaxy, State Bank of India and Tata Steel.

Between the two, the best is likely to be Ranbaxy. Its bearish trigger level is placed very close to its last traded price.

Bear pressure on Friday is likely to trigger this level.

Cash segment: There were no new entries or exits to the top 10 tradable list. The ranking of the list too remains unchanged.

Except for two counters, all are in the sideways mode. Bull domination on Friday is likely to terminate the downtrend in Hindustan Petro.

Bears are likely to have opportunity in BPCL, State Bank of India and Tata Steel.

Buying opportunities are likely to exist in Hindustan Petro and Infosys.

The best among the above is likely to be State Bank of India. Its sell level is placed closer to its current level.

Bear move on Friday is likely to initiate a fresh downtrend 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.

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