The Hindu Business Line : Bulls regain

THE sentiment reading of the tradable counters stands bullish. Bear domination on Thursday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The April contract opened with a weak note as it lost 9 points during the open of the day's trading. Later on, bulls took control of the day's proceedings. The April contract moved within a band of 36 points. It closed with a gain of around 22 points.

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Initial bear move led to the reversal of the uptrend in the April contract. However, the initiated short position is likely to be under threat. The long trade exited with a decent profit of 18 points. Re-entry level for the April contract is also placed closer to its current level. Bull domination on Thursday is likely to re-instate the uptrend in the April contract.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remains unchanged. The top three traded counters in this segment were Satyam, Reliance and State Bank. Wednesday's market action had no impact on the recommended counter — M&M.

Bull domination on Thursday is likely to terminate the downtrend in CNX-IT, Satyam and Tata Power. On the other hand, the uptrend in ONGC and State Bank are likely to be under threat. Buying opportunities are likely to exist in GAIL and M&M. Selling opportunities are likely to exist in five counters. The best bet is likely to be the buying in M&M. This counter is in the sideways mode. Its bullish trigger level is placed closer to its last traded value. Bull move on Thursday is likely to trigger the uptrend in M&M.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list underwent a change. Maruti and ONGC interchanged their positions. The day's move had no impact on the recommended counter - IPCL.

Bear domination on Thursday could be a threat to the uptrend in Reliance and State Bank. On the contrary, the downtrend in Infosys and Satyam are likely to be terminated. Bears are likely to have ample opportunities for Thursday's trading. A lone buying opportunity is likely to exist in ONGC.

Selling in IPCL is likely to be the best for Thursday's trading. Sell level for IPCL is placed very close to its current level.

Bear pressure 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.