The Hindu Business Line : Bull domination

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

Nifty futures recommendation: The April contract opened with a gap of nine points and kept fluctuating in the initial hour. Later on, bulls took charge of the day's proceedings. The April contract closed higher with a gain of 60 points.

In the initial hour, bears initiated the downtrend in the April contract. Bull domination thereafter reversed the initial trend of the April contract. The short trade exited with a loss of 39 points. The exit and bearish trigger levels for the April contract are placed far away.

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Stock futures recommendation: The composition of the top-10 tradable list remains unchanged. The ranking of the list had some changes. ONGC moved to the third position and Infosys to the eighth position. Trading activity in Polaris was quite hectic with more than 3900 trades.

Except for the lone downtrend counter — Tata Power, all the other counters in the list are likely to be safe. Buying opportunities are likely to exist in five counters. A lone selling opportunity is likely to exist in ONGC.

The best bet is likely to be the buying in Reliance. This counter has closed at RS 576.50. Its bullish trigger level is placed within a rupee from this level. Bull pressure on Thursday is likely to trigger this level.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list underwent changes. ONGC moved to the top-slot followed by Satyam and Tata Steel. Tuesday's market action had no impact on the recommended counter — Satyam.

None of the counters in the list is in the downtrend.

For Thursday, the uptrend in Infosys and Punjab Bank is likely to be under threat. Bears are unlikely to have any opportunity for Thursday's trading. Buying opportunities are likely to exist in five counters. The best is likely to be Tata Motors. This counter's buy level is placed closer to its current level. Bull move on Thursday is likely to initiate a fresh 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.