The Hindu Business Line : Marginal loss

BEARS exerted further pressure over Wednesday's trading activity. Neither the bulls nor the bears could gain much from the day's trading. The market sentiment reading of the tradable counters continues to remain neutral. Bear pressure on Thursday is likely to change the sentiment reading to bearish. On the other hand, it is likely to turn bullish.

Nifty futures recommendation: The February month contract opened with a bull gap of six points and went further by another six points. Bulls failed to capitalise on it as they yielded to bear pressure. The February contract moved within a band of 44 points. It closed lower with a loss of 30 points over Tuesday's close.

The day's market action resulted in initiating the downtrend in the February contract. In the normal course of trading on Thursday, the initiated short position is likely to continue. Both the exit and bullish trigger levels for the February contract are placed far away.

Click here for table

Stock futures recommendation: The composition of the top-10 tradable list in this segment had a change. ONGC gained entry with the exit of Arvind Mills. The top three traded counters in this segment were Tata Steel, State Bank and Reliance. The exit level for the uptrend in Arvind Mills is placed at 123.10.

Except for the downtrend in Satyam, all the other counters in the list are likely to be under threat. Selling opportunities are likely to exist in six counters. Buying opportunities are likely to exist in three counters.

For Thursday, the best bet is likely to be the selling in Reliance. Sell level for this counter is placed very close to its last traded value. Bear pressure on Thursday is likely to trigger the downtrend in Reliance.

Cash segment: There were no new entries to the top-10 tradable counters in this segment. SAIL moved to the top slot and Satyam to the fourth position were the two prominent changes in the ranking of the list.

Bear pressure on Thursday is likely to terminate the prevailing uptrend counters in the list. On the contrary, the downtrend in ACC and ITC are likely to be under threat. Selling opportunities are likely to exist in five counters. Buying opportunities are likely to exist in three counters. Selling in Reliance is likely to be the best for Thursday's trading. This counter is in the sideways mode.

Bearish trigger level for this counter is placed quite closer to its current level.

Bear move on Thursday is likely to initiate the 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.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Franklin flexi cap fund mops up Rs 1,950 cr

`Govt did not gain from UTI bailout'

Balaji Tele shares end lower on stake sale by Star TV arm

Marginal loss

Shaw Wallace in high spirits

GKW up on revival plan hopes

Hindalco hits FII buy limit

Outlook may turn positive for HDFC Bank, M&M

Consumer durables, capital goods gain

Govt plans to trim holding in all public sector banks to 51% — Spate of equity offerings on cards

Allahabad Bank files draft with SEBI