The Hindu Business Line : Bull charge

BULLS maintained their supremacy over Wednesday's trading activity. The day's market action resulted in reducing the bull count by a considerable margin.

However, the sentiment reading of the tradable counters remains bullish. Bear domination on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

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Nifty Futures Recommendation: The July month contract opened with a bear gap of four points and went further down by another eight points. Later on, bulls took charge of the day's proceedings and wiped out their early losses.

The July contract moved within a band of 31 points. It closed higher with a gain of 17 points over Tuesday's close.

With Thursday being the expiry day for the July contract, the long position in the July contract may be held with the stop loss placed at 2,270.70. Bearish entry level is given for the August contract. This level is placed quite far away and unlikely to be triggered on Friday.

Stock Futures Recommendation: There were no new entries or exits to the top 10 active counters list. The ranking of the list had a few changes. Polaris moved to the third position followed by Satyam and Tata Steel.

Fresh entry levels for all the counters are given for the August contract. Bears are likely to have opportunity in five counters.

A lone buying opportunity is likely to exist in Infosys. Buying in Infosys is likely to be the best bet for Thursday's trading. Bullish trigger level for this counter is placed very closer to the current level. Bull pressure on Friday is likely to trigger the uptrend in Infosys.

Cash Segment: The composition of the top 10 tradable counters underwent a change. Zee Tele gained entry with the exit of IPCL. The ranking of the list remains the same with no major changes.

Except for the uptrend in SBI, all the other counters in the list are likely to be under threat. Selling opportunities are likely to exist in four counters. Buying opportunities are likely to exist in two counters.

Selling in Tata Tele is likely to be the best for Friday's trading. Sell level for this counter is placed quite closer to the last traded price. Bear move on Thursday is likely to initiate a fresh downtrend in Tata Tele.

(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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