The Hindu Business Line : Bulls ablaze

Bulls blazed 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 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 7 points. May contract moved within a range of around 40 points. It closed with a gain of around 35 points from its previous close.

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The May contract entered a fresh long position in the morning session. 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

The composition of the top-10 tradable list had minor changes. Ranbaxy went out of the list and gave way to TCS. The long exit level for Ranbaxy is placed at Rs 505.50. The ranking of the list had no changes. The top-3 tradable counters in this segment were Reliance, Tata steel and ONGC.

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 are likely to be terminated. There are three opportunities on the buy side and five opportunities on the sell side. The best is likely to be selling in Maruti. Bear move on Thursday 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. ONGC moved up to second position and Maruti went down to fourth position. Hind Lever and Ranbaxy interchanged their positions.

All the counters in the top-10 tradable list are likely to be terminated during Thursday's trading. There are two opportunities on the buy side and five opportunities on the sell side. The best is likely to be selling in Tata Motors. This counter is in uptrend. Bear pressure on Thursday is likely to trigger the downtrend in this counter.

(Note: All price levels refer to the absolute value of the shares traded on the National Stock Exchange. There is risk of loss in trading.)

The author is a technical analyst and fund management consultant.