The Hindu Business Line : Sideways movement

Wednesday's trading activity witnessed sideways movement. However, the sentiment reading of the tradable counters changed to marginally 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 further strengthened with additional counters.

NIFTY FUTURES

The November month contract opened with a bull gap of around seven points from its previous close. But they were not able to sustain their initial momentum and gave way for bears during the initial hours of trading. The November month contract moved within a range of around 39 points making an intraday high of 3891.90. The November month contract closed with a gain of around eight points from its previous close.

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The long position in the November month contract exited and entered short. The short position was neutralised in the latter part of the trading. Bull move on Thursday is likely to initiate a fresh uptrend in November contract.

STOCK FUTURES

The composition of the top-10 tradable counters had no changes. However, the ranking of the list had minor changes. Century Tex and Reliance Capital interchanged their positions. SBIN, Bank of India and Hind Lever moved up while Tata Steel and Tata Motors moved down in the ranking. The top-3 tradable counters in this segment were SBIN, Reliance Industries and Reliance Capital. There are five downtrend and four uptrend counters in the top-10 tradable list. All the downtrend counters are likely to be under threat for Thursday's trading. On the contrary, the uptrend counter Reliance Capital 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 selling in Centex. This counter is in uptrend. Bear move on Thursday is likely to reverse the prevailing trend in Centex.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. Suzlon, Satyam and Tata Steel gave way to SBIN, Bank of India and Reliance Capital. SBIN, Bank of India and Reliance Capital occupied third, sixth and ninth positions respectively. Bajaj Auto, Zee Tele and Tata Motors moved down in the ranking. The exit levels for Suzlon, Satyam and Tata Steel are placed at 1380.10, 435.60 and 495 respectively.

There are six uptrend and four downtrend counters in the top-10 tradable list. Bull domination on Thursday is likely to terminate all the downtrend counters. On the other hand, the uptrend counters Bajaj Auto, Infosys and Reliance Capital are likely to be under threat for Thursday's trading. There are ample buying and three selling opportunities for Thursday's trading. The best is likely to be selling in Bajaj Auto. This counter is in uptrend. Bear move on Thursday is likely to reverse the uptrend 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.