The Hindu Business Line : Bear domination

THE sentiment reading of the tradable counters turned bearish. Bull domination on Thursday is likely to change the sentiment reading in their favour. On the contrary, the sentiment reading will be further strengthened with additional counters.

Nifty futures: The December month contract opened with a bull gap of around 5 points and went further up by 23 points. However, bulls could not capitalise on their initial momentum and gave way to bears.

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Bear domination was witnessed during the later part of the day. December month contract moved with in a range of around 90 points. It closed with a loss of around 60 points from its previous close.

The long position in the December contract remains intact. The exit and sell levels for the December contract is placed quite nearer to its last traded price. These levels are likely to be triggered during Thursday's trading.

Stock futures: The composition of the top-10 tradable counters had no changes. The ranking of the top-10 tradable list had minor changes. Maruti and ONGC interchange their positions. The top three tradable counters in this segment were Reliance Capital, Tata Steel and Reliance.

Two uptrend counters Tata Steel and Hindlever are likely to be under threat for Thursday's trading.

On the other hand, no downtrend counters are under threat. There are five selling opportunities in the list.

A lone buying opportunity is likely to exist in Infosys. The best for the Thursday is likely to be selling in Infosys. This counter is in sideways. Bear pressure on Thursday is likely to initiate a fresh downtrend in this counter.

Cash segment: The composition and ranking of the top-10 tradable list had no changes. Four uptrend counters in the list are likely to be under threat for Thursday's trading. On the other hand, two down trend counters Reliance and Infosys are likely to be under threat. There are two buying opportunities for Wednesday. A lone selling opportunity is likely to exist in Infosys. The best for Wednesday's trading is likely to be selling in Reliance Capital. This counter is in up trend. The sell level for this counter is likely to be triggered during Thursday's trading.

(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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