The Hindu Business Line : Bull domination

Bulls dominate over Wednesday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear pressure on Thursday is likely to change the sentiment reading in its favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty Futures Recommendation: The March month contract opened with a bear gap of around 10 points and went further down by 6 points.

Click here for table

However, bears could not capitalise their initial momentum and gave way to bulls. The March month contract moved within a range of around 53 points making an all-time high of 3108. It closed with a gain of around 35 points from its previous close.

The long position is initiated in the March contract. The long exit and short entry 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 Thursday's trading.

Stock Futures Commendation: The composition and ranking of the top-10 tradable list had minor changes. MTNL went out of the list and gave way to ICICI.

The top-3 tradable counters in this segment were Tata Motors, Tata Steel and Satyam Computer.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Thursday's trading. On the other hand, two downtrend counters State Bank and ONGC are likely to be terminated.

There are four opportunities on the buy side and three opportunities on the sell side. Best is likely to be buying in Infosys. This counter is in side ways mode. Bull pressure on Thursday is likely to initiate a fresh uptrend in this counter.

Cash Segment: The Composition of the top-10 tradable counters had minor changes. ICICI has gone out from the list and is replaced by Titan. The ranking of the top-10 tradable list had minor changes. Titan occupies first position and Satyam moved to last position.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Thursday's trading. Two downtrend counters VSNL and Titan are likely to be under threat.

Three opportunities exist on both the sides. The best is likely to be buying in VSNL. This counter is in downtrend. Bull pressure on Thursday is likely 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.