The Hindu Business Line : Bull domination

Bulls dominated Wednesday's trading activity. However, the sentiment reading of the tradable counters remains bearish. Bull move on Thursday is likely to change the sentiment reading in their favour.

On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The December month contract opened with a bull gap of around eight points from its previous close. The December month contract moved within a range of around 118 points making an intra-day high of 3774.50. The December month contract closed with a gain of around 58 points from its previous close.

The short position in the December month contract remains intact. The short exit and long entry levels are placed quite for away from its 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 counters had no changes. The top-3 tradable counters in this segment were Reliance Communications, Century Textiles and Reliance Industries.

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Except i-flex, all other counters in the top-10 list are in downtrend. Four downtrend counters Century Textiles, Reliance, Tata Motors and NTPC are likely to be terminated during trading on Thursday. There are four buying opportunities for Thursday's trading. The best is likely to be buying in Reliance. This counter is in downtrend. Bull 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 no changes. There are seven downtrend and two uptrend counters in the top-10 tradable counters. The downtrend counters SBIN, Reliance, Zee Tele and Infosys are likely to be under threat for Thursday's trading. There are five buying opportunities for Thursday's trading. The best is likely to be buying in Reliance. This counter is in downtrend. Bull 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.