The Hindu Business Line : Indecisive move

THURSDAY'S market action remained indecisive. Neither the bulls nor the bears could gain much from the day's trading. The sentiment reading of the tradeable counters stands neutral. Bull move on Monday is likely to change the sentiment reading to bullish. On the other hand, it is likely to turn bearish.

Nifty futures recommendation: The December contract opened three points above its previous close and went further by another eight points. Later on, bears took over and wiped out their early losses. The December contract moved within a band of 25 points. It closed with a loss of nine points with respect to previous close.

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The long position in the November contract expired. The long position in the November is likely to be closed out at 1901.05. This leaves the trade with a marginal profit. Bearish trigger level for the December contract is placed quite closer to its current level. Bear domination on Monday has the potential to initiate a fresh downtrend in the December contract.

Stock futures recommendation: The top three traded counters in this segment were Reliance, Tata Steel and NTPC. Thursday's market action had no impact on the recommended counter-Tata Steel.

None of the counters in the list are in the downtrend. Bear move on Monday is likely to terminate the prevailing uptrend counters in the list. Selling opportunities are likely to exist in seven counters. Buying opportunities are likely to exist in six counters. The best bet is likely to be the selling in Tata Steel. Bearish trigger level for this counter is placed just below its last traded value. Bear pressure on Monday is likely to trigger the downtrend in Tata Steel.

Cash segment: Thursday's market activity resulted in triggering the uptrend in the recommended counter-Wipro. Except for the downtrend in Reliance, 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 Tata Steel is likely to be the best for Monday's trading. This counter is in the sideways mode. Bear move on Monday had the potential to initiate a fresh 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 technical analyst and fund management consultant.