The Hindu Business Line : Bear domination

Bears dominated Thursday's trading activity. However, the sentiment reading of the tradable counters remains 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 with additional counters.

NIFTY FUTURES

January contract opened with a bull gap of around 8 points from its previous close. The contract moved within a range of around 56 points making an intra-day high of 4030. It closed with a loss of around 39 points from its previous close.

The long position in the January contract exited and entered short. The short exit and long entry levels are placed far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Friday's trading.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Infosys gave way to Satyam. Satyam occupied tenth position in the ranking. The top-3 tradable counters in this segment were Reliance, Polaris and IVRCL.

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There are five uptrend counters and four downtrend counters in the list. The uptrend counters i-flex, Tata Motors and Reliance Capital are likely to be under threat for Friday's trading. On the other hand, the downtrend counters Tata Steel and ACC are likely to be terminated. There are three opportunities on the buy side and four opportunities on the sell side for Friday's trading.

The best among them is likely to be selling in Tata Motors. This counter is in uptrend. Bear 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 no changes. However, the ranking had minor changes. Polaris and Infosys interchanged their positions. Satyam and BHEL interchanged their positions.

There are eight uptrend counters in the top-10 tradable list. All the uptrend counters are likely to be under threat for Friday's trading. On the other hand, the lone downtrend counter Tata Steel is likely to be terminated. There are two buying opportunities and ample selling opportunities for Friday's trading. The best among them is likely to be selling in i-flex. This counter is in uptrend. Bear 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.