The Hindu Business Line : Sideways movement

Wednesday's trading activity witnessed sideways movement. The sentiment reading of the tradable counters remained 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 December contract opened with a bull gap of around four points from its previous close. It moved within a range of 53 points, clocking an intra-day high of 4,030.90, before closing with a loss of 12 points from the previous close.

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The long position in the contract exited and entered short. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered in the normal course of trading during Thursday.

Stock futures

The composition of the top 10 tradable counters had no changes. However, the ranking saw minor changes.

Century Textiles moved up to third rank, pushing down Tata Steel. The top three tradable counters in this segment were Tata Steel, Reliance Industries and Century Textiles.

There are six uptrend counters and four downtrend counters in the top 10 tradable list.

Tata Steel, ICICI Bank and Reliance Industries are likely to be under threat for Thursday's trading. On the other hand, four downtrend counters are likely to be terminated.

There are four buying and three selling opportunities for Thursday's trading. The best bet is likely to be selling in ICICI Bank. Bear move on Thursday is likely to reverse the existing trend in this counter.

Cash Segment: The composition of the list had no changes. The ranking of the list had two changes. Zee Tele moved up to sixth position and Reliance Industries moved down to ninth position.

Except Tata Motors, all other counters are likely to be terminated during Thursday's trading.

There are two opportunities on the bull side and ample opportunities on the sell side for Thursday's trading. The best is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Thursday is likely to reverse the prevailing trend in Reliance Industries.

(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.