The Hindu Business Line : Range-bound movement

BEARS were successful to the extent of restricting the bulls from making further gains. However, the sentiment reading of the tradable counters remains bullish. Bear move on Friday is likely to change the sentiment reading in their favour.

On the contrary, the prevailing sentiment is likely to continue with added strength.

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Nifty futures recommendation: The near month February contract opened with a bear gap of six points and went further down by another 17 points. Later on bulls managed to recover most of their losses. The February contract moved within a band of 24 points. It closed with a loss of five points with respect to Thursday's close.

The uptrend in the February contract remains intact. The exit and bearish trigger levels are placed at the same level. Bear domination on Friday has the potential to reverse the prevailing uptrend in the February contract.

Stock futures recommendation: The composition of the top-10 tradable list underwent a change. Maruti regained entry with the exit of Arvind Mill. The ranking of the list had few changes. State Bank and Infosys interchanged their positions.

The exit level for the short position in Arvind Mill is placed at Rs 129.50.

Bear move on Friday is likely to terminate most of the uptrend counters in the list. On the other hand, the downtrend in CNX IT and Gujarat Ambuja Cement is likely to be under threat.

For Friday, six opportunities are likely to exist on either side of trading.

The best bet is likely to be the selling in Satyam. Sell level for this counter is placed within a rupee from its last traded value. Bear pressure on Friday is likely to trigger the downtrend in Satyam.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list too remains unchanged. Bulls were successful in triggering the uptrend in the recommended counter - ACC.

None of the counters in the list is in the downtrend. Bear pressure on Friday could be a threat to the prevailing uptrend counters. Selling opportunities are likely to exist in as much as nine counters. Buying opportunities are likely to exist in four counters.

Selling in Satyam is likely to be the best for Friday's trading. Bearish trigger level for this counter is placed quite closer to its current level. Bear move on Friday is likely to initiate a fresh downtrend in Satyam.

(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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