The Hindu Business Line : Bull onslaught

BULLS were in total command of Thursday trading activity. Their dominance left the bears with no opportunity during the day's trading. The sentiment reading of the tradable counters stands bullish with no downtrend counters. Bear domination on Friday is likely to neutralise the sentiment reading. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The near month January contract opened with a bull gap of six points and went further by 57 points. Bulls capitalised the day's entire move leaving the bears with no opportunity to recover. January contract closed higher with a strong bullish note.

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Strong bull domination during the day led to the initiation of the uptrend in January contract. The long position is unlikely to be disturbed on Friday as the exit and bearish trigger levels are placed quite far away.

Stock futures recommendation: There were no new entries to the top-10 tradable list. The ranking of the list had a few changes. State Bank moved to the fourth position followed by Reliance and Tata Motors.

Bear domination on Friday is likely to terminate the uptrend in GAIL (India), Reliance and Tata Steel. Bull pressure prevailing in the market has placed sell levels for all the tradable counters at a far away level. Buying opportunities are likely to exist in the CNX-IT, Hindustan Petro and Satyam Computer.

The best among the above is likely to be Satyam Computer. Its buy level is placed very near to its last traded price. Bull pressure on Friday is likely to trigger this level.

Cash segment: The composition of the top-10 tradable list underwent a change. L&T gained entry with the exit of Hindustan Petro. The ranking of the list had a total revamp.

The downtrend in Ranbaxy is likely to be terminated at Rs 1085.05.

For Friday, the uptrend in BPCL, Infosys, Reliance and Tata Steel is likely to be under threat. Bears are unlikely to have any opportunities for Friday's trading. Buying opportunities are likely to exist in ONGC and Satyam Computer.

Between the two, the best is likely to be Satyam Computer. Its bullish trigger level is placed closer to its current level. Bull move on Friday is likely to initiate a fresh uptrend in the 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.