The Hindu Business Line : Bears march ahead

The sentiment reading of the tradable counters remains strongly bearish with no uptrend counters. Bull domination on Thursday would result in reducing the bear count without much affect on the prevailing bearish sentiment.

Nifty futures recommendation: The January contract opened higher and made further gains during the initial hour of the day's trading. However, bears came back strongly and wiped out their early losses and took control of the day's activity.

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The January contract moved within a band of 66 points registering an intra-day low of 1,903 after making a high 1,968.80. It closed lower with a loss of around 30 points with respect to previous close.

The short position in the January contract remains intact. The short position is locked up with a significant profit of 77 points. The exit and bullish trigger levels for the January contract are still placed far away. The short position in the January contract is unlikely to be disturbed on Thursday.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list too remains unchanged. The top three traded counters in this segment were Infosys, Tata Steel and Satyam. The exit level for the short position in NTPC is placed at Rs 82.75.

Except for Reliance, all the other counters in the list are likely to be under threat.

Traders are left with a lone opportunity for Thursday's trading. This is likely to exist on the short side of Tata Motors. This counter is in the sideways mode. Bearish trigger level for this counter is placed closer to its current level. Bear pressure on Thursday is likely to trigger the downtrend in Tata Motors.

Cash segment: The composition as well as the ranking of the top-10 active counters list remains unchanged. Wednesday's market had no impact on the recommended counter - Zee Tele.

Bull move on Thursday is likely to terminate the downtrend in Reliance and SAIL. Buying opportunities are unlikely to exist for Thursday's trading. Selling opportunities are likely to exist in Infosys, Maruti and Tata Motors. The best among the above is likely to be Tata Motors. Bearish trigger level for this counter is placed quite closer to its last traded price.

Bear move on Thursday has the potential to initiate a fresh downtrend in Tata Motors.

(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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