The Hindu Business Line : Bears prevail

Bears prevailed over Wednesday's trading activity. The sentiment reading of the tradable counters changed to bearish. Bull move on Thursday is likely to change the sentiment reading to bullish. On the other hand, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The November contract opened with a bear gap around 4 points from its previous close. The November contract moved with in a range of around 69 points making an intra day low of 3747.15. It closed with a loss of around 15 points.

The long position in the November contract exited and entered short. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Thursday's trading.

STOCK FUTURES

The composition and ranking of the top-10 tradable counters had minor changes. REL gave way to Tata Motors. Tata Motors occupied seventh position. SBIN moved up and occupied sixth position while Bank India and SRF moved down and occupied ninth and eighth positions respectively. The top-3 tradable counters in this segment were Reliance Industries, Tatasteel and SBIN. The exit level for Reliance Energy is placed at 501.80.

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There are seven downtrend and three uptrend counters in the top-10 tradable list. Except Reliance Capital and SRF, other downtrend counters are likely to be under threat for Thursday's trading. On the other hand, the uptrend counter SBIN is likely to be terminated. There are ample buying opportunities and a lone selling opportunity for Thursday's trading. The best is likely to be buying in ONGC. This counter is in downtrend. Bull move on Thursday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. Satyam moved down and occupied seventh position in the ranking. Infosys, Bajaj auto, Suzlon and Tatasteel moved up in the ranking.

There are eight downtrend and two uptrend counters in the top-10 tradable list. Except Reliance, Bajaj auto and Tata Motors, other downtrend counters are likely to be under threat for Thursday's trading. On the other hand uptrend counters Infosys and Suzlon are likely to be terminated. There are ample buying opportunities and two selling opportunities for Thursday's trading. The best is likely to be selling in Infosys. 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.