The Hindu Business Line : Bull domination

Bulls dominated Wednesday's trading activity. The sentiment reading of the tradable counters turned mildly bullish. Bull pressure on Thursday is likely to strengthen the prevailing sentiment reading. On the contrary, the sentiment reading is likely to turn bearish.

Nifty futures: The May month contract opened with a bull gap of around 15 points and never looked back through out the day. Bulls left no opportunity for bears to recover. May contract moved with in a range of around 114 points. It closed with a gain of around 124 points from its previous close.

Bull domination during the day reversed the short position in the May contract. The short position in the May contract exited with a profit of around 136 points. Both the long exit and short entry levels are placed quite far away. These levels are unlikely to be triggered during Thursday's trading.

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Stock futures: The composition and the ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Reliance, Tata Steel, and State Bank.

The lone downtrend counter ACC is likely to be under threat during Thursday's trading. On the other hand, all the uptrend counters are likely to be terminated. Selling opportunities are likely to exist in five counters and ACC is likely to have the lone buying opportunity for Thursday's trading. The best is likely to be selling in Infosys. This counter is in uptrend. Bear pressure on Thursday is likely to reverse the existing trend in Infosys.

Cash segment: The composition of the list had a minor change. Ranbaxy gained entry with the exit of Ranbaxy Labs. The ranking of the list too had a change. Tata Steel and Satyam interchanged their rankings. Ranbaxy occupied the last rank in the list. Short Exit level for ACC is placed at 899.95.

All the uptrend counters in the list are likely to be under threat for Thursday's trading. On the contrary, downtrend in Maruti is likely to be terminated. There are five selling opportunities and one buying opportunity for Thursday's trading. The best is likely to be buying in Maruti. Bull move on Thursday is likely to trigger the 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.