The Hindu Business Line : Bear domination

Bears dominated the Wednesday's trading activity. The sentiment reading of the tradable counters remained 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 January month contract opened with a bear gap of around 28 points from its previous close. The January month contract moved within a range of around 48 points making an intraday low of 3831.60. The January month contract closed with a loss of around 64 points from its previous close.

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

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. Satyam gave way to ONGC. ONGC occupied tenth position in the ranking. Reliance Industries and SBI interchanged their positions.

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The top-3 tradable counters in this segment were Reliance Industries, Reliance communications and Infosys.

The short exit level for Satyam is placed at 470.60.

There are eight downtrend counters and a lone uptrend counter in the top-10 tradable list.

Except SBI, Reliance Capital and ONGC other downtrend counters are likely to be under threat for Thursday's trading. On the other hand, a lone uptrend counter is likely to be terminated.

There are six buying and two selling opportunities for Thursday's trading. The best among them is likely to be buying in Infosys. This counter is in downtrend. Bull move on Thursday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes.

SBI and Tisco moved down while Satyam, Polaris and ONGC moved up in the ranking.

All the counters are in downtrend. Except BHEL, SBI and ONGC other downtrend counters are likely to be under threat for Thursday's trading.

There are ample buying opportunities for Thursday's trading. The best among them is likely to be buying in Infosys. 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.