The Hindu Business Line : Volatile market

BEARS prevailed over Thursday's trading activity. The sentiment reading of the tradable counters remains 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 further strengthened with additional counters.

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Nifty futures recommendation: The January month contract opened with a bear gap of around 28 points. It moved with in a range of around 45 points making an intra-day low of 2807. It closed with a loss of around 30 points from its previous close.

The short position in the January contract remains intact. The exit and buy levels 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 top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Motors moved up to fifth position and ONGC moved down to eighth position. The top three tradable counters in this segment were Reliance, Infoys and Satyam.

All the downtrend counters in the top-10 tradable list are likely to be under threat for Friday's trading. On the other hand, a lone uptrend counter Ranbaxy is likely to be terminated.

There are ample opportunities on both the sides of trading. The best is likely to be buying in Tata Motors. This counter is in down trend. Bull move on Friday is likely to reverse the existing 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 and Titan interchanged their positions.

There are no uptrend counters in the list.

Except Infosys all the other downtrend counters are likely to be terminated during Friday's trading.

There are ample opportunities on the buy side.

A lone opportunity on the sell side is likely to exist in Titan.

The best is likely to be buying in State Bank. This counter is in side ways mode. Bull move on Friday is likely to initiate a fresh uptrend 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.