The Hindu Business Line : Volatile movement

BEARS exerted pressure during the initial hours of Thursday's trading. During the mid-session of trading, bulls made a strong comeback to recoup their losses. However, bears regained control towards the end of the day's activity and brought about a steep fall.

The sentiment reading of the tradable counters remains strongly bearish. Bull or bear domination on Friday is unlikely to change the prevailing bearish sentiment.

Nifty Futures Recommendation: The January month contract moved quite violently on Thursday. It moved within a wide band of around 98 points. The January contract for the second consecutive day lost its ground. It closed with a substantial loss of 58 points with respect to Wednesday's close.

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The day's move had no impact on the recommended levels. The short position is now locked up with a marginal profit. The exit and bullish trigger levels for the January contract are still placed far away. These levels are unlikely to be triggered on Friday.

Stock Futures Recommendation: The composition of the top-10 tradable list remains intact. The ranking of the list underwent a change. GAIL and Tata Steel interchanged their position. For those still holding short position in ONGC may do so with the stop loss placed at 790.55.

All the counters in the tradable list are in the downtrend. Their exit and bullish levels are placed far away. The nearest entry level is for Tata Power. Strong bull domination has the potential to reverse the prevailing downtrend in this counter.

Cash Segment: There were no entries or exits to the top-10 tradable list. The ranking of the list too remains the same with no major changes. The downtrend in L&T is likely to be terminated at 544.50.

Bear pressure prevailing in the market has placed the exit levels and bullish trigger levels for the tradable counters quite far away. For Friday, the nearest opportunity is on the long side of Infosys. This counter is in the downtrend. Bull power on Friday has the potential to reverse the prevailing trend 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.