The Hindu Business Line : Indecisive move

WEDNESDAY'S market action resulted in initiating the downtrend in a few tradable counters. As a result, the sentiment reading of tradable counters stands mildly bearish. Bull domination on Thursday is likely to change the sentiment in their favour. Otherwise, the prevailing bearish sentiment is likely to be further strengthened.

Nifty futures recommendation: The July month contract opened with a bull gap of seven points and made steady gains over the course of the day's trading.

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The supremacy of the bulls left the bears with no opportunity to recover.

The July contract moved within a band of 26 points registering an intra-day low of 2201.20. It closed higher with a gain of 29 points over the previous close.

The long position in the July contract remains intact. The exit and bearish trigger levels for the July contract remains unchanged. These levels are placed far away and are unlikely to be triggered.

Stock futures recommendation: The composition of the top-10 active counters list underwent a change. Tata Motors gained entry with the exit of Arvind Mills.

The ranking of the list had some changes. Satyam moved to the fourth position and Infosys to the eighth position.

For Thursday, most of the counters in the list are likely to be under threat. Bulls are likely to have an opportunity in four counters. Selling opportunities are likely to exist in three counters.

Buying in Reliance is likely to be the best for Thursday's trading. Buy level for this counter is placed within a rupee from the last traded value. Bull pressure on Thursday is likely to initiate a fresh uptrend in Reliance.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a change. State Bank and Tata Steel interchanged their positions.

Bull pressure on Thursday could be a threat to the prevailing downtrend counters in the list. On the contrary, the uptrend in IPCL and State Bank are likely to be terminated. Buying opportunities are likely to exist in as much as seven counters. Selling opportunities are likely to exist in two counters.

For Thursday, the nearest entry level is for Reliance on the long side. This counter is in the sideways mode. Bullish trigger level for this counter is placed quite closer to the current level. Bull move on Thursday is likely to trigger the uptrend 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.

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