The Hindu Business Line : Bull rampage

BULLS were in total command of Thursday's trading activity. Their dominance for the third successive trading day left the bears stranded. The sentiment reading of the tradable counters stands strongly bullish. Bear domination on Friday has the potential to reduce the bull count by a considerable margin thereby resulting change in the sentiment reading.

Nifty futures recommendation: The near month September contract opened with a gain of 30 points and made steady gains from the day's trading. In the morning spurt, the September contract registered a freak quote of 2444.00. This has been discarded for our study as there was no other quote registered in that vicinity. The September contract moved with a gain of around 27 points over Wednesday's close.

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The uptrend in the September contract is now placed out of the danger zone. The long position is locked-up with a decent profit of 25 points. Bear domination on Friday has the potential to terminate the uptrend in the September contract. Bearish trigger level for the September contract is placed quite far away.

Stock futures recommendation: The composition as well as the ranking of the top 10 tradable counters remains intact.

Bear pressure on Friday is likely to terminate most of the uptrend counters in the list. On the other hand, the lone downtrend counter — Bank of India is likely to be under threat. There are ample selling opportunities for Friday's trading. Buying opportunity is likely to exist in Bank of India. Selling in BOB is likely to be the best for Friday's trading. This counter is in sideways mode. Sell level for this counter is placed quite nearer to its last traded price. Bear move on Friday has the potential to initiate fresh downtrend in this counter.

Cash segment: There are no changes to the top-10 tradable list. The ranking of the list too remains undisturbed. Bull move on Thursday initiated the uptrend in the recommended counter- Tata Steel.

All the positions in the list are likely to be under threat for Friday's trading. Selling opportunities are likely to exist in eight counters and buying opportunities are likely to exist in three counters. Selling in i-flex is likely to be the best bet for Friday's trading. This counter is the uptrend. Bear domination on Friday has the potential to reverse the prevailing uptrend in i-flex.

(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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