The Hindu Business Line : Bull domination

Bulls dominated Thursday's trading activity. However, the sentiment reading of the tradable counters changed to neutral. Bear move on Friday is likely to change the sentiment reading in to bearish. On the other hand, it is likely to turn to bullish.

Nifty Futures: The October month contract opened with a bull gap of around 19 points from its previous close. The October contract moved with in a range of around 46 points, posting an intra-day high of 3,584.90. It closed with a gain of around 55 points from its previous close.

The short position in the October contract exited and entered long. 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 on Friday.

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Stock Futures: The composition of the top 10 tradable list had no changes. However, the ranking of the list had minor changes. Infosys and ACC moved down to seventh and ninth positions respectively. Bajaj Auto moved up to fifth position from sixth position. The top three tradable counters in this segment were Reliance Industries, Tata Steel and SBI.

There are six uptrend and four downtrend counters in the top 10 tradable list. All the counters in the top 10 tradable list are likely to be under threat for Friday's trading.

There are four opportunities on the buy side and ample opportunities on the sell side for Friday's trading. The best is likely to be selling in Reliance Industries. 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. Reliance Capital and Tata Steel moved up to sixth and seventh positions respectively. Infosys moved down to last position from sixth position. The exit levels for HDFC, ICICI Bank and SBI are placed at Rs 1,466.80, Rs 698.05 and Rs 1,005.95 respectively. There are six downtrend counters and four uptrend counters in the top 10 tradable list. All the counters in the top 10 tradable list are likely to be under threat for Friday's trading.

There are six opportunities on the buy side and four opportunities on the sell side for Friday's trading. The best is likely to be selling in i-flex. This counter is in uptrend. Bear 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.