The Hindu Business Line : Bears curtailed

BULL domination on Wednesday reduced the bear count by a considerable margin. Bull domination on Thursday is likely to change the sentiment reading in its favour. On the contrary, the sentiment reading is likely to be strengthened on the bear side.

Nifty futures recommendation: The December month contract opened with a bull gap of around seven points. It moved within a range of around 34 points, making an intra-day low of 2,653.30. It closed with a gain of 41 points from its previous close.

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The short position in the December month contract remains intact. The exit and buy levels for the December month contract are placed quite nearer to the last traded price. In the normal course of trading, these levels are likely to be triggered during Thursday's trading.

Stock futures recommendation: The composition and the ranking of the top-10 tradable list had minor changes. IPCL went out of the list and gave way for ONGC. Satyam moved up to the fourth position and Tata steel moved down to the seventh position. The short exit level for IPCL is placed at 225.65. The top three tradable counters in this segment were Reliance, State bank and Reliance Capital.

All the up-trend and downtrend counters in the top-10 tradable list are likely to be terminated during Thursday's trading. There are five opportunities on the buy side and four opportunities on the sell side for Thursday's trading. The best for Thursday's trading is likely to be buying in Reliance. Bull move on Thursday is likely to change the trend in this counter.

Cash segment: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Reliance Capital and India bulls moved up to first and second positions while pushing down Titan and Reliance to third and fourth positions respectively.

All the up-trend and downtrend counters in the top-10 tradable list are likely to be under threat for Thursday's trading. There are five opportunities on the sell side and ample opportunities on the buy side for Thursday's trading. The best for Thursday's trading is likely to be buying in SRF. This counter is in the sideways mode. Bull pressure on Thursday is likely to initiate a fresh up trend in this counter.

(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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