The Hindu Business Line : Bear domination

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

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Nifty futures recommendation: The April contract opened around its previous close and steadily lost ground. Bears were in charge of the day's trading as the April contract registered an intra-day low of 1831.15. During the fag end of the day's trading, bulls managed to make a partial recovery. The April contract closed with a loss of 14 points.

The long position in the April contract remains intact. The exit and bearish trigger levels for the April contract too remains unchanged. In the normal course of trading on Thursday, the uptrend is likely to continue. However, strong bear domination has the potential to reverse the trend in the April contract.

Stock futures recommendation: The top-10 tradable list underwent a change. Infosys gained entry with the exit of Infosys. The ranking of the list remains the same with no major changes. The exit level for the uptrend in Maruti is placed at 512.10.

Bear pressure on Thursday is likely to terminate the uptrend in Infosys, Reliance and State Bank. On the other hand, the lone downtrend counter -Tata Steel is likely to be under threat. Buying opportunities are likely to exist in CNX IT, ONGC and Satyam. Selling opportunities are likely to exist in five counters. The best is likely to be the buying in Satyam. This counter is in the sideways mode and has closed at 315.30. Bull move on Thursday has the potential to trigger the uptrend in Satyam.

Cash segment: The composition as well as the ranking of the top-10 tradable list remains unchanged.

Wednesday's market action resulted in triggering the downtrend in the recommended counter - ONGC.

However, the termination level for the initiated downtrend is in the danger zone.

Bear domination on Thursday could be a threat to the uptrend in Infosys, State Bank and Tata Motors. Bears are likely to have opportunity in five counters.

Buying opportunities are likely to exist in GAIL, ONGC and Punjab Bank. Selling in Infosys is likely to be the best bet for Thursday's trading. This counter is in the uptrend. Its exit and bearish trigger levels are placed closer to its last traded value.

Bear pressure on Thursday is likely to reverse the prevailing 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.