The Hindu Business Line : Bears prevail

Bull domination on Thursday has the potential to turn the sentiment reading to bullish. On the contrary, the prevailing bearish sentiment is likely to continue with added strength.

Nifty futures recommendation: The May month contract opened two points lower than the previous close and went down further by another 14 points. Later on, the bulls made a strong comeback and wiped out their losses.

The May month contract moved within a band of 26 points. It closed with a marginal gain of 3 points over Tuesday's close.

Initial bear move led to the initiation of the downtrend in the May contract. The exit level for the initiated short position is placed quite closer to the current level. Bull move on Thursday is likely to terminate the downtrend in the May contract. Bullish trigger level for the May contract is placed quite far away and this is unlikely to be triggered on Thursday.

Stock futures recommendation: The top-10 tradable list in this segment has changed. Bank of Baroda gained entry with the exit of Bank of India. The ranking of the list remains the same with no major changes. The exit level for the short position in Bank of India is placed at 97.40.

None of the counters in the list are in the uptrend. Bull domination on Thursday could be a threat to most of the prevailing downtrend counters in the list. Bulls are likely to have an opportunity in as much as eight counters. Selling opportunities are likely to exist in two counters. Buying in State Bank is likely to be the best for Thursday's trading. Bullish trigger level for this counter is placed closer to the last traded value. Bull pressure on Thursday is likely to initiate a fresh uptrend in State Bank.

Cash segment: There were no new entries or exits to the top-10 active counters list. The ranking of the list had a minor change. Oriental Bank and Tata Motors interchanged their positions. The downtrend in SAIL is likely to terminate at 52.05.

Bull pressure on Thursday is likely to terminate most of the downtrend counters.

The uptrend in Oriental Bank and State Bank is likely to be under threat.

For Thursday, five opportunities are likely to exist on either side of trading. The best bet is likely to be buying in Satyam. This counter is in the sideways mode. The buy level for this counter is placed quite closer to the current level. Bull move on Thursday is likely to trigger the uptrend 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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