The Hindu Business Line : Bull domination

BULLS dominated the trading activity on Wednesday. The sentiment reading of the tradable counters turned bullish. Bear domination on Thursday is likely to reduce the bull count to the bare minimum, thereby neutralising sentiment reading.

On the other hand, the prevailing bullish sentiment is likely to continue with slight change in its value.

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Nifty Futures Recommendation: The October contract opened with a bear gap of around 5 points but thereafter could not sustain their pressure. However, Bulls made a comeback during the later part of trading.

The October contract moved within a band of 21 points. It closed higher with a marginal gain of around 3 points.

Bull domination during Wednesday initiated the uptrend in the October contract. In the normal course of trading on Thursday, the initiated long position is likely to continue.

However, bear domination has the potential to terminate the uptrend. Bearish entry level is given for November contract and this is placed far away.

Stock Futures Recommendation: There were no new entries to the top-10 tradable list. The top three traded counters in the segment were Maruti, Satyam and Tata Steel.

None of the counters in the list are in the downtrend. Bear domination on Thursday could be a threat to most of the uptrend counters in the list. Bears are likely to have opportunities in the five counters.

A lone buying opportunity is likely to exist in State Bank. Selling in ONGC is likely to be the best bet for Thursday's trading. Bear pressure on Thursday is likely to reverse the prevailing trend in ONGC.

Cash Segment: The composition and the ranking of the list remain unchanged.

Except for ONGC and State Bank, all the other counters in the list are in the uptrend.

Bear domination on Thursday is likely to terminate most of the uptrend counters in the list. On the contrary, the lone downtrend counter - State Bank is likely to be under threat. For Thursday, two opportunities are likely to exist in either side of trading. The best is likely to be the selling in ONGC. Bear move on Thursday is likely to initiate fresh downtrend 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 technical analyst and fund management consultant.)