The Hindu Business Line : Bears reign

The sentiment reading of the tradable counters stands neutral. Bear pressure on Thursday is likely to change the sentiment reading in its favour. On the contrary, it is likely to turn bullish.

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Nifty futures recommendation: During the initial hour of Wednesday's trading the near month July contract gained five points. Thereafter, bears took charge of the day's proceedings.

The July contract moved within a band of 38 points registering an intra-day low of 2,186.35. It closed with a loss of around 24 points with respect to Tuesday's close.

Wednesday's market action had no impact on the recommended levels. Bearish trigger level is now placed quite closer to the last traded value. Further bear move on Thursday has the potential to initiate a fresh downtrend in the July contract.

Stock futures recommendation: The composition of the top-10 tradable counters remains unchanged. The ranking of the list underwent some changes. Infosys moved to the third position followed by Tata Motors and Tata Steel.

Except for the downtrend in Infosys, all the other counters in the list are 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 the selling in Reliance. This counter is in the uptrend. The exit and bearish trigger levels for this counter are placed closer to the current level. Bear move on Thursday is likely to trigger these levels.

Cash segment: There were no new entries or exits to the top-10 active counters list. The ranking of the list had a change. Satyam and VSNL interchanged their positions. The day's market resulted in triggering the downtrend in ONGC.

For Thursday, most of the counters in the list are likely to be under threat. Bears are likely to have opportunity in IPCL, Reliance and State Bank. Buying opportunities are likely in ONGC, Reliance and Reliance Energy.

Selling in Reliance is likely to be the best for Thursday's trading. Bearish trigger level for this counter is placed within Rs 2 from the last traded price. Bear pressure on Thursday is likely to initiate a fresh 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.

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