The Hindu Business Line : Bear domination

THE sentiment reading of the tradable counters changed to bearish. Bull domination on Friday is likely to change the sentiment reading in their favour. On the contrary, the bearish sentiment is likely to be strengthened.

Nifty futures: The December month contract opened with a bear gap of around 15 points. The December month contract moved with in a range of around 52 points making an intra-day low of 2755.10. It closed with a loss of around 24 points from its previous close.

The long position in the December month contract reversed in the morning session. The exit and buy levels are placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Friday's trading.

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Stock futures: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Steel and Satyam interchanged their positions. The long exit level for ONGC is placed at 1077.50. The top three tradable counters in this segment were Satyam, Tata Steel and State Bank of India.

Both the up trend counters in the top-10 tradable list are likely to be under threat for Friday's trading. On the other hand, down trend counter in Reliance and Tata Motors are likely to be terminated. There are three opportunities on the buy side and four opportunities on the sell side.

The best for Friday's trading is likely to be selling in ICICI Bank. This counter is in sideways mode. Bear move on Friday is likely to initiate a fresh down 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 Reliance interchanged their positions. Titan moved to second position from tenth position. The exit level for Tata Steel is placed at 364.95.

All the up trend counters in the top-10 tradable list are likely to be terminated during Friday's trading. On the other hand, three down trend counters in the list are likely to be under threat. There are two opportunities on the buy side for Friday's trading. The best is likely to be buying in Infosys. This counter is in down trend. Bull pressure on Friday is likely to reverse the existing 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.