The Hindu Business Line : Bulls prevail

Bulls prevailed over Wednesday's trading activity. However, the sentiment reading of the tradable counters remains 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 February month contract opened with a bear gap of around 24 points from its previous close. However, the bears could not sustain the initial momentum and gave way to bulls. The contract moved within a range of around 99 points making an intraday high of 4074. It closed with a gain of around 29 points from its previous close.

The short position in the February contract remains intact. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during the normal course of trading during Thursday.

Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. SBI, Hindalco and ICICI moved up in the ranking while Tata Steel, Century Tex and Reliance Capital moved down. The short exit level for MTNL, IDBI and Satyam are placed at 145, 93.55 and 469.75 respectively.

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There are eight downtrend and two uptrend counters in the top-10 tradable list. The downtrend counters Tata Steel, ICICI and Reliance Capital are likely to be under threat for Thursday's trading. On the other hand, all the uptrend counters are likely to be terminated. There are three buying opportunities and two selling opportunities for Thursday's trading. The best among them is likely to be buying in Reliance Capital. 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. Reliance Industries gave way to ICICI. Zee Tele, IDBI and SBI moved up in the ranking, while SAIL and BHEL moved down. The short exit level for Suzlon is placed at 1090.05, while the long exit level for Reliance Industries is placed at 1342.20.

All the counters in the top-10 tradable list are in downtrend. Tata Steel, SAIL, Satyam and Infosys are likely to be under threat for Thursday's trading. There are four buying opportunities for Thursday's trading. The best among them is likely to be buying in SAIL. This counter is in downtrend. 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.