The Hindu Business Line : Bulls prevail

Bulls prevailed over Thursday's market action. However, sentiment reading of the tradable counters turned neutral. Bull domination on Friday is likely to change the sentiment reading in their favour.On the contrary, it is likely to turn bearish.

Nifty Futures

The May month contract gapped down by 40 points. However bears could not capitalise on their initial move and gave way to bull pressure. The May month contract moved within a range of around 192 points. It closed with a gain of around 65 points from its previous close.

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The short position in the May month contract expired. Fresh entry levels are given in the June contract. The long entry level is placed quite near to the last traded price. Bull move on Friday is likely to initiate fresh position in the June month contract.

Stock Futures

The composition and the ranking of the top-10 tradable list remained unchanged. The top-3 tradable counters in this segment were Reliance, Tata Steel, and ACC.

Bull pressure on Friday is likely to terminate the downtrend in Ranbaxy. On the other hand, the lone uptrend counter MTNL is likely to be under threat during Friday's trading. There are ample buying opportunities for Friday's trading. Bajaj Auto is likely to be the lone selling opportunity for Friday's trading. The best among the above is likely to be buying in Infosys. This counter is in Sideways mode. Bull pressure on Friday is likely to trigger the long position in this counter.

Cash Segment

The Composition of the top-10 tradable list had minor changes. Infosys & SAIL gave way to SAIL & Gujambcem. SAIL occupied seventh rank while Gujambcem occupied last rank in the list. Short exit level for Infosys is placed at 3035.75.

Except ONGC, all the downtrend counters in the list are likely to be under threat for Friday's trading. On the contrary, SAIL & Gujambcem is likely to be terminated. All the selling levels are placed quite far away. There are seven buying opportunities for Friday's trading. The best bet for Friday's trading is likely to be buying in State Bank. Bull move on Friday is likely to reverse the existing 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.