The Hindu Business Line : Bull domination

Bulls dominated 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 January month contract opened with a bear gap of around 21 points from its previous close. However, bears could not capitalise on their initial momentum and gave way to bulls. The January month contract moved within a range of around 156 points making an intraday high of 3969. The January month contract closed with a gain of around 129 points from its previous close.

Click here for table

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

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. ACC gave way to Satyam. Tata Motors occupied fifth position pushing down Reliance Capital and Bank of India to sixth and seventh positions respectively. The top-three tradable counters in this segment were Reliance Industries, Reliance Communications and Infosys.

There are eight uptrend and two downtrend counters in the top-10 tradable list. The uptrend counters — Reliance Industries, Tata Motors and Bank of India are likely to be under threat for Friday's trading. There is a lone buying and three selling opportunities are available 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 of the top-10 tradable list had no changes. However, the ranking had minor changes. SBI and BHEL interchanged their positions.

There are six uptrend counters in the list. Four of the uptrend counters in the list are likely to be under threat for Friday's trading. On the other hand, BHEL and ONGC are likely to be terminated. There are three buying opportunities and four selling opportunities for Friday's trading. The best among them is likely to be selling in Tata Motors. This counter is 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.