The Hindu Business Line : Bull domination

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

NIFTY FUTURES

The November month contract opened with a bull gap of around 9 points from its previous close. The November month contract moved within a range of around 27 points making an intra-day high of 3968.90. The November month contract closed with a gain of around 14 points from its previous close.

The November month contract exited due to expiry. The entry levels are given for December month contract. The long entry level is placed quite nearer to its last traded price. Bull move on Friday is likely to initiate a fresh uptrend in December month contract.

STOCK FUTURES

The composition of the top-10 tradable counters had no changes. However, the ranking had minor changes. ACC moved up to second position pushing down Centex to sixth position. NTPC and ONGC interchanged their positions. The top-3 tradable counters in this segment were Reliance Industries, Tata Steel and SBI.

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All the counters are in sideways mode. All the levels are given for December month contract. There are ample opportunities on either side of the Friday's trading. The best bet is likely to be selling in Tata Steel. Bear move on Friday has a potential to trigger the short entry level in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. ONGC gave way to Satyam. Reliance Industries and ICICI Bank interchanged their positions. Infosys moved up to fifth position pushing down Bank India to sixth position.

There are three uptrend counters and four downtrend counters are likely to be under threat for Friday's trading. There are ample opportunities on the buy side. On the other hand, there are four opportunities on the bear side for Friday's trading. The best is likely to be buying in Infosys. This counter is in downtrend. Bull 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.