The Hindu Business Line : Bull domination

THE sentiment reading of the tradable counters stands bullish. Bear domination on Friday is likely to neutralise the sentiment reading. Otherwise the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: During the open of the Thursday's trading, the May contract slipped by a whopping 67 points. Thereafter, bulls made a strong comeback and gained control of the day's proceedings. The May contract registered an intra-day high of 1733.80 after making a low of 1,628. It closed with a marginal gain of 5 points.

Bull domination during the day led to the termination of the downtrend in the May contract. The short trade exited with a profit of 83 points. Bullish trigger level has been moved closer to its current level. Bull domination on Friday is likely to trigger the uptrend in the May contract. Bearish trigger level for the May contract is placed quite far away.

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Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remains unchanged. Trading activity in IPCL was quite hectic on Thursday with more than 5,700 trades.

The prevailing counters in the tradable list are likely to be safe. Traders are left with a lone opportunity for Friday's trading. This is likely to exist on the short side of State Bank. This counter is in the sideways mode. Its bearish trigger level is placed closer to its closing value. Bear domination on Friday is likely to trigger these levels.

Cash segment: There were no new entries to the top-10 tradable list. The ranking of the list had a minor change. Power Trade Corp moved to the eighth position and Union Bank to the ninth position. The downtrend in Canara Bank is likely to be terminated at 168.40.

Bear pressure on Friday is likely to terminate the downtrend in Tata Steel. Entry levels for most of the counters in the list are placed slightly away. The nearest entry level is on the long side of Tata Steel. This counter is in the downtrend. Its exit and buy levels are placed closer to its current level. Bull domination on Friday has the potential to reverse the prevailing downtrend in Tata Steel.

(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.