The Hindu Business Line : Bears prevail

BEARS prevailed over Wednesday's trading activity. However, they could not make any gains from the day's trading. The sentiment reading of the tradable counters remains bullish. Bear pressure on Thursday is likely to change the sentiment reading in their favour.

On the contrary, the prevailing bullish sentiment is likely to continue with added strength.

Nifty futures recommendation: The near month October contract opened with a bear gap of five points and, thereafter, steadily lost during the day's trading. Bulls were unable to make any impact during the day. The October contract moved within a band of 29 points. It closed with a loss of 25 points with respect to Wednesday's close.

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Bears were successful in terminating the uptrend in the October contract. The long trade exited with a loss of 29 points. Bearish trigger level is now placed very close to its last traded value. Bear move on Thursday has the potential to initiate the downtrend in the October contract.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of list underwent changes. Reliance moved to the top slot followed by Tata Steel, Satyam and Infosys.

Bull pressure on Thursday is likely to terminate most of the uptrend counters in the list.

On the other hand, the downtrend in CNX IT is likely to be under threat. Selling opportunities are likely to exist in eight counters. Buying opportunities are likely to exist in three counters. Selling in Reliance is likely to be the best bet for Thursday's trading. Bear move on Thursday is likely to initiate a fresh downtrend in Reliance.

Cash segment: The composition of the top-10 tradable list remains unchanged. The ranking of the list had a total revamp with SAIL moving to top slot. Bulls were successful in initiating the uptrend in the recommended counter-Maruti.

For Thursday, the prevailing uptrend counters in the list are likely to be under threat. Bears are likely to have opportunity in almost all the counters.

Buying opportunities are likely to exist in two counters. Selling in Reliance is likely to be the best for Thursday's trading. Bearish trigger level for this counter is placed within a rupee from its current level. Bear pressure on Thursday is likely to trigger the downtrend in Reliance.

(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.