The Hindu Business Line : Bull domination

Bulls dominated Wednesday's trading activity. The sentiment reading of the tradable counters remains marginally bullish. Bear move on Thursday 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

The February opened with a bear gap of around 13 points from its previous close. However, the bears could not sustain their initial momentum and gave way to bulls. It moved within a range of around 46 points making an intraday high of 4,224. The contract closed with a gain of around 30 points from its previous close.

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The long position in the February contract exited and entered short. The short position was neutralised during the latter part of the trading. Bull move on Thursday is likely to initiate a fresh uptrend in the February month contract.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. IDBI and VSNL moved up in the ranking while SBI, Tata Steel and MTNL moved down. There are five downtrend counters and five uptrend counters in the top-10 tradable list. All the downtrend counters are likely to be under threat for Thursday's trading. On the other hand, the uptrend counters ICICI, Century Tex and Satyam are likely to be terminated. There are five buying opportunities and three selling opportunities for Thursday's trading. The best among them is likely to be buying in VSNL. This counter is in downtrend. Bull move on Thursday 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. BHEL gave way to Reliance Capital. Reliance Capital occupied tenth position in the ranking. . The short exit level for ONGC and BHEL are placed at 909.95 and 2518.05 respectively.

There are four downtrend counters and five uptrend counters in the top-10 tradable list. All the downtrend counters are likely to be terminated. On the other hand, the uptrend counters Satyam, ICICI and Suzlon are likely to be under threat for Thursday's trading. There are five buying opportunities and three selling opportunities for Thursday's trading. The best among them is likely to be buying in Infosys. This counter is in sideways mode. Bull move on Thursday is likely to initiate a fresh uptrend 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.