The Hindu Business Line : Bulls prevail

Thursday's trading activity witnessed volatile movement. However, 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 with additional counters.

Nifty futures

The May month contract opened with a bull gap of around 12 points and went up by another 25 points. However, bulls could not capitalise on their initial momentum and gave way to bears.

The May contract moved within a range of around 49 points. It closed with a gain of around 10 points from its previous close.

The long position in the May contract remains intact. 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 Friday's trading.

Stock Futures

The composition and the ranking of the top 10 tradable list had no changes. The top three tradable counters in this segment were Reliance, Reliance Capital and Tata Steel.

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

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There is a lone opportunity on the buy side and five opportunities on the sell side. The best is likely to be selling in BHEL. Bear move on Friday is likely to change 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. Maruti and ONGC interchanged their positions. VSNL and Tata Motors moved up to seventh and eighth positions respectively.

All the counters in the top 10 tradable list are likely to be terminated during Friday's trading. There are three opportunities on the buy side and ample opportunities on the sell side.

The best is likely to be selling in Tata Motors. This counter is in uptrend. Bear pressure on Friday is likely to trigger the downtrend 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.