The Hindu Business Line : Bear domination

BEARS were in total control of Wednesday's trading activity. The sentiment reading of the tradable counters stands bearish. Bull domination on Thursday has the potential to change the sentiment reading in their favour.

On the other hand, the prevailing bearish sentiment is likely to turn extremely bearish.

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Nifty futures recommendation: The December month contract opened eight points below its previous close and immediately recovered. However, this could not be sustained long. The contract moved within a band of 37 points registering an intra-day low of 1976.25 after making a high of 2004.60. It closed with a loss of 14 points with respect to Tuesday's close.

Bears failed to terminate the uptrend in the December contract. However, this is likely to be under threat for Thursday. The exit level is placed just five points away from its current level. Bearish trigger level for the December contract remains unchanged and this is unlikely to be triggered on Thursday.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. Reliance moved to the top slot and State Bank moved to the second position. Except for the downtrend in Tata Steel, all the other counters in the list are likely to be under threat.

Buying opportunities are likely to exist in CNX IT, Infosys and Maruti. A lone selling opportunity is likely to exist in ONGC. The best among the above is likely to be the selling in ONGC. This counter is in the uptrend. Bear domination on Thursday is likely to reverse the prevailing uptrend in ONGC.

Cash segment: The composition of the top-10 tradable list as well as the ranking of the list remains unchanged. Wednesday's market action had no impact on the recommended counter - ONGC.

Bull domination on Thursday is likely to terminate the downtrend in Infosys, Satyam and Wipro. On the contrary, the uptrend in ONGC and State Bank is likely to be under threat. Bears are likely to have opportunities in ONGC and SAIL.

Buying opportunities are likely to exist in Infosys, Maruti and Wipro.

Selling in ONGC is likely to be the best for Thursday's trading. This counter is in the uptrend. The exit and bearish trigger levels for this counter is placed close to the closing price. Bear pressure on Thursday has the potential to trigger the downtrend in ONGC.

(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.