The Hindu Business Line : Bulls prevail

Bulls prevailed over Thursday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Friday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

NIFTY FUTURES

The December month contract opened with a bull gap of around 14 points from its previous close. The December month contract moved within a range of around 86 points making an intra-day high of 3852.40. The December month contract closed with a gain of around 81 points from its previous close. The short position in the December month contract exited and entered long. The long exit and short 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 Friday.

STOCK FUTURES

The composition of the top-10 tradable counters had no changes. However, the ranking of the list had minor changes. Century Textiles and State Bank of India interchanged their positions. Reliance Industries moved up to third position pushing down ACC to fifth position. The top-3 tradable counters in this segment were Century Textiles, IVRCL and Reliance Communications.

There are six uptrend and four downtrend counters in the top-10 list. There are two uptrend counters in the list likely to be under threat for Friday's trading. On the other hand, two downtrend counters are likely to be terminated. There are two opportunities each on both the sides of trading on Friday. The best is likely to be buying in Reliance Capital. This counter is in downtrend. Bull move on Friday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. Bank of India gave way to ICICI Bank. Reliance Industries and Zee Tele moved up to first and second positions pushing down State Bank of India and ACC to fourth and eighth positions respectively. The long exit level for Bank of India is placed at 172.95.

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There are four uptrend counters in the list likely to be under threat for Friday's trading. On the other hand, ACC is likely to be terminated. There is a lone opportunity on the buy side and four opportunities on the sell side for Friday's trading. The best is likely to be selling in State Bank of India. This counter is in uptrend. Bear move on Friday 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.