The Hindu Business Line : Bears prevail

BEARS prevailed over Thursday's trading activity. However, the sentiment reading of the tradable counters remains neutral. Bear move on Friday has the potential to change the sentiment reading in their favour. On the other hand, the prevailing sentiment is likely to continue undisturbed.

Nifty Futures recommendation: The October-month contract opened with a bear gap of around 18 points. But, the initial momentum of bears was countered by the bulls and market went up by around 16 points in the initial hour of trading. However, bulls were not able to capitalise and gave way to bears during the later part of day. The October contract moved within a range of 58 points making an intra-day low of 2528.25. It closed with a loss of around 56 points from Tuesday's close.

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The short position in the October-month contract is undisturbed. The exit and buy levels for the October-month contract are placed quite far away. In the normal course of trading during Friday, these levels are unlikely to be triggered.

Stock Futures recommendation: The composition of the list had no changes. However, ranking of the top-ten tradable list had minor changes. State Bank moved up to the third position while IPCL and Satyam computers occupied fourth and seventh positions respectively. Infosys moved up to fifth position from seventh. The exit level for BOB is placed at 246.70. The top three tradable counters in this segment were Infosys, State Bank and Reliance.

Hind lever is the lone downtrend counter under threat for Friday's trading. On the other hand, all the uptrend counters in the list are under threat. Selling opportunities are likely to exist in Reliance, IPCL, Infosys, Tata Motors, ICICI and ONGC. Hind Lever is likely to be the lone opportunity on the buying side. The best for Friday's trading is likely to be selling in ONGC. This counter is in uptrend. Bear pressure on Friday is likely to reverse the prevailing trend in this counter.

Cash segment: The composition and ranking of the top-10 tradable list had minor changes. Tata Steel gave way to Infosys. India Bulls moved to tenth position in the tradable list. The exit level for the downtrend in Tata Steel is placed at 405.45.

All the uptrend counters are likely to be under threat for Friday's trading. On the contrary, downtrend in Sesa Goa is likely to be terminated. Selling opportunities are likely to exist in Mcdowell, Reliance Industries, ITC, Infosys and India Bulls. Mcdowell and Reliance Industries are likely to be the buying opportunities for Friday's trading. The best for Friday's trading is likely to be the selling in Reliance Industries. Bear pressure on Friday is likely to trigger the downtrend in Reliance Industries.

(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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