The Hindu Business Line : Volatile movement

WEDNESDAY'S market action resulted in initiating the uptrend in a few tradable counters. However, the sentiment reading of the tradable counters remains bearish.

Bull move on Thursday is likely to reduce the bear count by a considerable margin thereby resulting a change in the sentiment reading.

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Nifty futures recommendation: The April month contract opened with a bull gap of 12 points and went further by another 50 points. Thereafter, bears made a strong comeback to make a partial recovery. The April contract moved within a band of 57 points registering an intra-day low of 1,892.20. It closed with a gain of 40 points over previous close.

Bulls were successful to the extent of terminating the downtrend in the April contract. The short trade exited with a profit of around 57 points. Bullish trigger level for the April contract is placed closer to the current level. Bull domination on Thursday has the potential to trigger the uptrend in April contract.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a total revamp. For those still holding short position in Cipla may do so with the stop loss placed at Rs 240.05.

Bull move on Thursday could be a threat to most of the downtrend counters in the list. On the contrary, the uptrend in ONGC, Reliance and Tata Motors is likely to be under threat. Buying opportunities are likely to exist in four counters. A lone selling opportunity is likely to exist in PNB.

The best bet for Thursday's trading is likely to be the buying in PNB. Bullish trigger lever for this counter is placed closer to the last traded price. Bull pressure on Thursday is likely to initiate a fresh uptrend in PNB.

Cash segment: The composition of the top-10 active counters list remains intact. Satyam and SAIL interchanged their positions.

Except for downtrend in Infosys and Satyam, all the other counters in the list are likely to be under threat. Bulls are likely to have opportunity in four counters. Selling opportunities are likely to exist in two counters. Buying in PNB is likely to be the best for Thursday's trading. Buy level for this counter is placed quite closer to the current level. (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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