The Hindu Business Line : Bulls prevail

THE bulls prevailed over Wednesday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear pressure on Friday is likely to change the sentiment reading in their favour.

On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

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Nifty futures: The January month contract opened with a bull gap of around 9 points. The contract moved within a range of 23 points, making an intra-day low of 2,908. It closed with a gain of around 19 points from its previous close.

The January month contract exited on expiry. The long entry and short entry levels for the February month contract are placed quite far away from its last traded price. In the normal course of trading, the entry level is unlikely to be triggered during Friday's trading.

Stock futures: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Reliance and Tata Steel interchanged their positions. ICICI Bank moved up to the sixth position and Infosys moved down to eighth position. The top-3 tradable counters in this segment were Reliance, State Bank and Tata Steel. The fresh entry levels are given for the February month contract.

All the uptrend and downtrend counters in the top-10 tradable list are likely to be under threat for Friday's trading. There are ample opportunities on both sides of trading. The best for Friday is likely to be selling in Tata Steel. This counter is in a sideways mode. Bear pressure 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. ICICI Bank moved up to seventh position and Reliance Capital moved down to ninth position. Tata Motors moved to eighth position from ninth position.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Friday's trading. Three downtrend counters are likely to be terminated. There are three opportunities on each side of trading. The best is likely to be selling in Tata Steel. This counter is in an uptrend. Bear pressure on Friday has the potential to reverse the prevailing 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.