The Hindu Business Line : Initial gains not held

BULLS extended further pressure over the initial hours of Wednesday's trading activity. However, during the later session, bears managed to gain handsomely. The sentiment reading of the tradable counters stands mildly in favour of the bulls. Bear move on Thursday is likely to change the sentiment reading in their favour.

On the other hand, the prevailing bullish sentiment is likely to be further strengthened.

Click here for table

Nifty futures recommendation: During the initial hours, trading in September contract gained around 17 points. Bears gained control of the mid-session resulting a fall of 40 points.

The downward pressure was marginalised as the day ended flat.

The day's move had no impact on the recommended levels. The exit level for the long position in the September contract has been moved closer to the current level. Bear domination on Thursday has the potential to terminate the uptrend.

Bearish trigger level for the September contract is still placed far away and this is unlikely to be triggered.

Stock futures recommendation: The composition of the top-10 active counters list had a change. REL gained entry with the exit of Bank of India. The ranking of the list too had some changes.

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

The best bet for Thursday's trading is likely to be the selling in ONGC. This counter is in the sideways mode. Sell level for this counter is placed quite closer to the current level. Bear pressure on Thursday is likely to trigger the downtrend in ONGC.

Cash segment: The composition of the top-10 tradable counters in the list remains intact. The ranking of the list had a few changes.

Rolta moved to the fourth position followed by Scandent and Reliance Capital. The uptrend in Infosys and Tata Motors are likely to terminate at 2419.95 and 512.95 respectively.

Bear pressure on Thursday could be a threat to the prevailing uptrend counters in the list.

On the contrary, the downtrend in Reliance and Satyam are likely to be under threat. Bulls are likely to have opportunity in Reliance and Satyam.

A lone selling opportunity is likely to exist in Mcdowell. The best among the above is likely to be the buying in Satyam. This counter is in the downtrend. Bull move on Thursday has the potential to reverse the prevailing downtrend in Satyam.

(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.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page