The Hindu Business Line : Bull domination

Bulls dominated Thursday's trading activity. However, the sentiment reading of the tradable counters remains bearish. Bull move on Friday 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 February month contract opened with a bull gap of around 11 points from its previous close. The February month contract moved within a range of around 70 points making an intra-day high of 4142. The February month contract closed with a gain of around 78 points from its previous close.

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

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. ONGC gave way to ICICI. ICICI occupied sixth position in the ranking. SBI and Reliance moved up while Tata Steel, IDBI, Satyam, MTNL, Tata Motors and BHEL moved down in ranking. The top-3 tradable counters in this segment were Tata Steel, SBI and IVRCL. The short exit level for Reliance Capital and ONGC are placed at 636.60 and 919.70 respectively.

There are seven downtrend counters and three uptrend counters in the top-10 tradable list. All the downtrend counters are likely to be under threat for Friday's trading. On the other hand, the uptrend counter Satyam is likely to be terminated. There are ample buying opportunities and a lone selling opportunity for Friday's trading. The best among them is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Friday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. ONGC gave way to SBI. SBI occupied fifth position in the ranking. SAIL moved up in the ranking while Satyam, Infosys, BHEL, Polaris, ICICI and IDBI moved down. The short exit level for TCS and ONGC are placed at 1,295.05 and 919.95 respectively.

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There are six downtrend counters and four uptrend counters in the top-10 tradable list. Except SBI, other uptrend counters are likely to be under threat for Friday's trading.

On the other hand, all the downtrend counters are likely to be terminated. There are six buying opportunities and three selling opportunities for Friday's trading. The best among them is likely to be buying in SAIL. This counter is in downtrend. Bull 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.