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K. Premkumar

BEARS extended their pressure over Thursday's trading activity. The sentiment reading of the tradable counters continues to remain bearish with no uptrend counters.

In the normal course of trading on Friday, the prevailing bearish sentiment is likely to continue with a slight change in its value.

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Nifty futures recommendation: The January month contract opened around its previous close and lost around 38 points during the initial hour of day's trading.

Bulls made a valiant attempt and crossed the opening price by thirteen points. However, bears had a final say on the day's trading. The January contract closed with a loss of 31 points with respect to previous close.

The short position in the January contract remains intact. The position is locked-up with a decent profit of 35 points. The exit and bullish trigger levels for the January contract are still placed far away. These levels are unlikely to be triggered on Friday.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable counters list. The ranking of the list had few changes. Tata Steel moved to the top slot followed by State Bank and Reliance. The downtrend in Ranbaxy is likely to be terminated at 1226.05.

Except for CNX IT, all the other counters in the list are likely to be safe. Bears are likely to have opportunity in Infosys, Reliance and Tata Steel. Buying opportunities are likely to exist in Infosys and Reliance. The best among the above is likely to be the selling in Tata Steel. Bearish trigger level for this counter is placed very close to its current level. Bear pressure on Friday is likely to trigger the downtrend in Tata Steel.

Cash segment: The composition of the top-10 active counters list remains unchanged. The ranking of the list had some changes. Tata Steel moved to the second position and Satyam moved to the fifth position. Friday's market action had no impact on the recommended counter-Infosys.

For Friday, the downtrend in SAIL and Zee Tele are likely to be under threat. Traders are left with limited opportunities for Friday's trading. Two opportunities are likely to exist on either side of trading. The best bet is likely to be the selling in Reliance. This counter is in the sideways mode. Bear move on Friday has the potential to initiate a fresh 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.

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