The Hindu Business Line : Bears prevail

THE sentiment reading of the tradable counters stands mildly bearish. Bear domination on Friday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

Nifty futures recommendation: The June contract opened four points lower than its previous close and further went down by another 13 points. During the mid-session of the day's trading, bulls managed to control the bear-run. June contract moved within a band of 24 points. It closed with a loss of around six points with respect to Wednesday's close.

Bear domination during the day led to the termination of the uptrend in the June contract. The long trade exited with a loss of 21 points. Both bullish and bearish trigger levels for the June contract are equally poised from the current level.

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Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remains unchanged. Thursday's market action resulted in triggering the downtrend in the recommended counter-ONGC.

Bull domination on Friday is likely to terminate most of the prevailing downtrend counters in the tradable list. On the other hand, the uptrend in CNX IT and Maruti are likely to be under threat. Selling opportunities are likely to exist in five counters. Buying opportunities are likely to exist in four counters. The best bet for Friday's trading is likely to be the selling in Reliance. Sell level for Reliance is placed quite closer to its last traded value. Bear move on Friday is likely to initiate a fresh downtrend in this counter.

Cash segment: There were no new entries or exits to the top-10 tradable list in this segment. The ranking of the list underwent a change. ONGC and Tata Motors interchanged their positions. Except for HPCL, all the other counters in the list are likely to be under threat. Bears are likely to have opportunity in four counters. Buying opportunities are likely to exist in five counters. Selling in GAIL is likely to be the best for Friday's trading. This counter is in the sideways mode. Bearish trigger level for this counter is placed close to its current level. Bear pressure on Friday is likely to trigger the downtrend in GAIL.

(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 technical analyst and fund management consultant.