The Hindu Business Line : Bull domination

BULLS were in total control of Thursday's trading activity. Thursday's market action resulted in terminating the downtrend counters in the list. The sentiment reading of the tradeable counters stands bullish with no downtrend counters. Bear domination on Friday has the potential to change sentiment reading in their favour.

Nifty futures recommendation: The October month contract opened with a bull gap of seven points and went further by another seven points. Bears were unable to make any impact during the day's trading. The October contract closed with a gain of around 14 points with respect to Wednesday's close.

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Bull domination during the day led to the initiation of the uptrend in the October contract. In the normal course of trading on Friday, the initiated long position is likely to continue. Bearish trigger level for the October contract is placed far away.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradeable list remains unchanged. The top three traded counters in this segment were Tata Steel, Tata Motors and Maruti.

Bear pressure on Friday is likely to terminate the prevailing uptrend counters in the list. Selling opportunities are likely to exist in four counters. Buying opportunities are likely to exist in five counters. For Friday, the best bet is likely to be the selling in Maruti. This counter is in the sideways mode. Sell level for this counter is placed quite closer to its current level. Bear move on Friday is likely to trigger the downtrend in Maruti.

Cash segment: The composition of the top-10 active counters list remains unchanged. The ranking of the list remains intact. Bulls were successful in initiating the uptrend in the recommended counter-Tata Steel.

Except for Maruti and Zee Tele, all the other counters in the list are in the uptrend. Bear domination on Friday could be a threat to most of the uptrend counters in the list. Bears are likely to have opportunity in four counters. Buying opportunities are likely to exist in Maruti and Zee Tele. Selling in Maruti is likely to be the best for Friday's trading. Bearish trigger level for this counter is placed within two rupees from its last traded price. Bear pressure on Friday is likely to initiate a fresh downtrend in Maruti.

(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.