The Hindu Business Line : Bull onslaught

THE sentiment reading of the tradable counters stands bullish with no downtrend counters. Bear domination on Thursday is likely to neutralise the sentiment reading. Otherwise, the prevailing sentiment is likely to be further strengthened.

Nifty futures recommendation: During the open, the April contract lost around five points. Thereafter, bulls took charge of the day's proceedings. The April contract moved within a band of 47 points. It closed with a gain of 39 points.

Bull domination during the day led to the reversal of the downtrend in the April contract. The short traded exited with a nominal profit of five points. In the normal course of trading on Thursday, the initiated long position is likely to continue.

Click here for table

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. Trading activity in Maruti was hectic on Wednesday with more than 9,000 trades.

For Thursday, the uptrend in CNX IT and Satyam are likely to be under threat. Bulls are likely to have opportunity in five counters. Selling opportunities are likely to exist in four counters. Buying in Tata Power is likely to be the best bet for Thursday's trading. Buy level for Tata Power is placed within a rupee from its last traded price. Bull pressure on Thursday is likely to trigger the uptrend in this counter.

Cash segment: The composition of the top-10 tradable list and their ranking remains unchanged. Wednesday's market action had no impact on the recommended counter-Infosys.

Bull domination during the day has placed the exit levels for all the counters at a far away level. Buying opportunities are likely to exist in Infosys, ONGC, Punjab Bank and State Bank. Selling opportunities are likely to exist in Infosys and ONGC. The best among the above is likely to be State Bank. Bullish trigger level for State Bank is placed closer to its current level. Bull move on Thursday 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.