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K. Premkumar

THE bears maintained their pressure over the initial hour of Wednesday's trading. Later on, the bulls made a strong comeback and gained control of the day's proceedings.

The day's market action had less impact on the top-10 tradable counters. The sentiment reading of the tradable counters remains bearish. Bull pressure on Thursday is likely to change the sentiment reading in their favour.

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Nifty futures recommendation: During the initial hour of Wednesday's trading, the August contract lost around 16 points. Thereafter, the bears made an instant recovery and wiped out their early losses.

The August contract moved within a wide band of 61 points, registering an intra-day high of 2,408.70. It closed higher with a gain of 40 points with respect to the previous close.

The initial down move led to the initiation of the downtrend in the August contract. However, this was reversed during the later part of the day's market action. The short trade exited with a loss of around 32 points. In the normal course of trading, the long position is likely to continue on Thursday.

Stock futures recommendation: The composition of the top-10 active list had major changes. The ranking of the list had a total revamp. The exit level for the downtrend in ICICI Bank, NTPC and REL is placed at 504.35, 97.20 and 615.30, respectively. The uptrend in ONGC is likely to terminate at 951.30.

For Thursday, most of the counters in the list are likely to be under threat. Buying opportunities are likely to exist in six counters. Selling opportunities are likely to exist in two counters.

The best is likely to be the buying in Reliance. The bull move on Thursday has the potential to initiate a fresh uptrend in Reliance.

Cash segment: The composition as well as the ranking of the top-10 tradable counters list remains unchanged. Wednesday's market action resulted in initiating the uptrend in the recommended counter - ONGC.

Bulls are likely to have opportunity in five counters. Selling opportunities are likely to exist in State Bank and Tata Steel.

Buying in Reliance is likely to be the best bet for Thursday's trading. This counter is in the sideways mode. Bullish trigger level for this counter is placed within a rupee from the last traded price. Bull pressure 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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