The Hindu Business Line : Bear onslaught

THE valiant effort of bulls at the open of Wednesday's trading activity could not sustain the pressure of the bears, who were in total command of the day's proceedings.

The sentiment reading of the tradable counters stands strongly bearish with no uptrend counters. Irrespective of bull or bear domination on Thursday, the prevailing sentiment is likely to continue with a slight change in its value.

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Nifty Futures Recommendation: The near month January contract initially gained six points. Bulls failed to capitalise on it as they yielded to bear pressure. The January contract moved substantially for the second successive trading day. It closed with a loss of 34 points with respect to previous close.

Bear domination during the day led to the initiation of the downtrend in the January contract. The short position is unlikely to be disturbed on Thursday. The exit and bullish trigger levels for the January contract are placed at a far away level.

Stock Futures Recommendation: The composition of the top 10 tradable list had a change. ACC gained entry with the exit of ONGC. Tata Motors moved to the top slot. The top three traded counters in the list were Satyam, Reliance and Tata Steel. The exit level for the short position in ONGC is placed at 822.30.

Except for Satyam Computer all the other counters in the list are likely to be safe. Selling opportunities are likely to exist in ACC and Tata Steel. A lone buying opportunity is likely to exist in Satyam Computer.

The best among the above is likely to be Tata Steel. Its bearish trigger level is placed quite closer to its current level. Bear pressure on Thursday is likely to trigger this level.

Cash Segment: The top 10 tradable list in this segment underwent a change. Tata Motors gained entry with exit of L&T. The ranking of the list had a minor change. Reliance Industries and Tata Steel interchanged their positions.

Bear pressure prevailing in the market has placed the exit levels and bullish trigger levels for the tradable counters at a far away level. Bulls are unlikely to have any opportunity for Thursday's trading.

Selling opportunities are likely to exist in Reliance, SAIL and Tata Motors. The best bet is likely to be Reliance. Its sell level is placed very close to its last traded price. Bear move on Thursday is likely to initiate the 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.