The Hindu Business Line : Bears rebound

BULLS extended their dominance during the morning session of Thursday's trading. Later part of the day saw the bears rebounding to gain an upper edge over the day's trading. The tradeable counters were not affected in the later part of the rally. The sentiment reading of the tradeable counters stands bullish with no downtrend counters. Bear pressure on Friday is likely to turn the sentiment reading in their favour.

Nifty futures recommendation: Initially, the near month February contract gained 22 points. Thereafter, bears made a strong comeback and took control of the day's proceedings. February contract moved widely within a band of 74 points registering a low of 1778.35. It closed for the day with a loss of 24 points.

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Initial move led to the initiation of the uptrend in the February contract. Bear move on Friday is likely to terminate the uptrend. Bearish trigger level for the February contract is placed far away and this level is unlikely to be triggered on Friday.

Stock futures recommendation: The composition and the ranking of the top-10 tradeable list remain undisturbed. Trading activity in Polaris Soft was quite impressive with more than 4200 trades.

Most of the counters in the list are in the uptrend. Except for GAIL, all the other counters in the list are likely to be under threat. Bulls are likely to have a lone opportunity in Satyam. Selling opportunities are likely to exist in CNX IT and Tata Motors. The best among the above is likely to be Satyam. Its buy level is placed closer to its last traded price. Bull move on Friday is likely to trigger this level.

Cash segment: The list of the top-10 tradeable counters in this segment remains unchanged. The ranking of the list had a minor change with ONGC and SAIL interchanging their positions.

Bear domination on Friday is likely to terminate the prevailing uptrend counters in the tradeable list. Buying opportunities are likely to exist in ONGC and Satyam. Selling opportunities are likely to exist in ONGC and Tata Motors. The best bet is likely to be Satyam. This counter is in the sideways mode. Its bullish trigger level is placed very close to its current level. Bull pressure on Friday is likely to initiate the uptrend 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.