The Hindu Business Line : Bull domination

Bulls dominated Wednesday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be strengthened.

NIFTY FUTURES

The November contract opened with a bull gap of around 12 points from its previous close. The November contract moved within a range of around 35 points making an intra day high of 3,778.80. It closed with a gain of around 24 points from its previous close.

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The long position in the November contract remains intact. The long exit and short entry levels are placed quite far from their last traded price. In the normal course of trading, these levels are unlikely to be triggered during trading on Thursday.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Infosys, The top-3 tradable counters in this segment were Reliance Industries, State Bank and Tata Steel. The exit levels for ACC, Maruti, BHEL, Bajaj Auto and Jet Airways are placed at 971.95, 961.95, 2,420.05, 2,793.75 and 595.05 respectively.

There are two uptrend counters and four downtrend counters are likely to be under threat for Thursday's trading. There are three opportunities on either side of Thursday's trading. The best is likely to be selling in ICICI Bank. This counter is in uptrend. Bear move on Thursday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. ITC, Maruti, I-Flex, Hind Lever, L&T, Tata Motors and ICICI Bank moved out of the list and gave way to Reliance Industries, ONGC, Bajaj Auto, SAIL, VSNL, Suzlon and TCS. The exit levels for Reliance Capital, Hind Lever, SBI, i-flex, Maruti, ITC, Tata Motors, ICICI Bank, and L&T are placed at 577.55, 233.35, 1,088.95, 1,516.05, 956.15, 189.85, 840.80, 771.10 and 1,302.05 respectively.

There are four uptrend counters and four downtrend counters are likely to be under threat for Thursday's trading. There are four opportunities each on either side of Thursday's trading. The best is likely to be selling in Suzlon. This counter is in uptrend. Bear move on Thursday is likely to reverse the prevailing 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.