The Hindu Business Line : Bear domination

Bears Dominated over Thursday's trading activity. The sentiment reading of the tradable counters remains neutral. Bear move on Thursday is likely to change the sentiment reading in to bearish. On the other hand, it is likely to remain neutral.

Nifty futures

The July month contract opened with a bear gap of around 20 points. The July contract moved with in a range of around 43 points making an intraday high of 3153.90. It closed with a loss of around 32 points from its previous close.

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The July contract is in side ways mode. The long entry level is placed quite nearer and the short entry level is placed quite far away from its last traded price. Bull move on Friday is likely to initiate a fresh uptrend in July contract.

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.

All the uptrend and down trend counters in the top-10 tradable list are likely to be under threat for Friday's trading. There are ample opportunities on either side of the trading. The best is likely to be buying in Maruti. This counter is in down trend. Bull move on Friday is likely to trigger the uptrend in this counter.

Cash segment

The composition of the top-10 tradable list had minor changes. Tata Motors moved out of the list and gave way to ACC. The ranking of the list had no changes. The exit levels for Tata Motors and SAIL are placed at 786.95 and 81.45 respectively.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Friday's trading. On the other hand, ITC is likely to be terminated. There are two opportunities on bull side and ample opportunities on bear side. The best is likely to be selling in L&T. This counter is in side ways mode. Bear move on Friday is likely to initiate a fresh down 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.