The Hindu Business Line : Bear run arrested

Bull gained control of Thursday's trading activity thereby arresting the three-day long bear-run. The day's market action resulted in reducing the bear count by a considerable margin.

However, the sentiment reading of the tradable counters stands mildly bearish. Further bull move on Friday is likely to change the sentiment reading to bullish. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

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Nifty futures recommendation: The near month January contract opened with a bear gap of thirteen points. Bears could not capitalise on it as the bulls made an instant recovery. The January contract moved within a band of 53 points registering an intra-day high of 1960. It closed with a gain of 34 points over Wednesday's close.

The short position in the January contract remains undisturbed. The exit and bullish trigger levels for the January contract remain unchanged. These levels are still placed far away. In the normal course of trading on Friday, these levels are unlikely to be triggered.

Stock futures recommendation: The composition as well as the ranking of the top-10 active counters list remain unchanged. TCS, Tata Steel and Infosys were the top three traded counters in this segment.

None of the counters in the list is in the uptrend. Bull move on Friday is likely to terminate most of the prevailing downtrend counters in the list.

Bears are unlikely to have any opportunity for Friday's trading. Buying opportunities are likely to exist in as much as eight counters.

The best bet is likely to be the buying in State Bank. Bullish trigger level for this counter is placed quite closer to its last traded value. Bull move on Friday has the potential to initiate a fresh uptrend in State Bank.

Cash segment: The top-10 active counters in the list underwent a change. ONGC gained entry with the exit of Zee Tele. The ranking of the list had few changes.

Infosys and SAIL interchanged their positions. The exit level for the downtrend in Zee Tele is placed at Rs 166.70.

Most of the counters in the list are in the sideways mode. Bear move on Friday could be a threat to the uptrend in Infosys and SAIL. On the other hand, the downtrend in Reliance is likely to be terminated.

Buying opportunities are likely to exist in seven counters. A lone selling opportunity is likely to exist in ONGC.

Buying in State Bank is likely to be the best for Friday's trading. This counter is in the sideways mode. Buy level for this counter is placed very close to its current level. Bull pressure on Friday is likely to trigger the uptrend in State Bank.

(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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