The Hindu Business Line : Bear domination

Bears dominated Thursday's trading activity. However, the sentiment reading of the tradable counters remains bullish. Bear move on Friday is likely to neutralise the sentiment reading. On the other hand, the prevailing sentiment reading is likely to be further strengthened with additional counters.

Nifty futures

The July month contract opened with a bear gap of around 12 points from Wednesday's close. The July contract moved with in a range of around 55 points making an intraday low of 3117.10. It closed with a loss of around 35 points from its previous close.

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The position in July contract remains neutral. The long and short entry levels are placed quite nearer to Thursday's last traded price. Further bear pressure on Friday is likely to initiate a fresh downtrend in July contract.

Stock futures

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

All the uptrend counters in the top-10 tradable list are likely to be under threat for Friday's trading. On the other hand, two downtrend counters are likely to be terminated. There are ample buying opportunities and two selling opportunities exist for Friday's trading. The best is likely to be selling in Bajaj Auto. This counter is in uptrend. Bear move on Friday is likely to trigger the downtrend 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. Infosys moved up to second position from sixth position.

All the uptrend counters in the list are likely to be under threat for Friday's trading. Except Infosys the other two downtrend counters are likely to be terminated.

The best is likely to be selling in Maruti. This counter is in uptrend. Bear move on Friday is likely to reverse the prevailing trend in Maruti.

(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.