The Hindu Business Line : Bear domination

Bears dominated Wednesday's trading activity. 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 strengthened.

NIFTY FUTURES

The March contract opened with a bear gap of around 87 points from its previous close and further went down by another 100 points to making an intraday low of 3700.05. The March contract moved within a range of around 129 points. The March contract closed with a loss of around 172 points from its previous close.

The short position in the March contract remains intact and has a huge locked profit of around 100 points. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Thursday's trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 tradable list had minor changes. SBI occupies first position and IDBI moved to third position. Reliance and Hindalco interchange their positions. Tisco occupies second position of the top-10 tradable list. The top-3 tradable counters in this segment were IVRCL, Reliance and SBI.

There is no uptrend counters in the top-10 tradable list. There is no threat for Thursday's trading. A lone buying opportunity is likely to exist in Reliance Industries. This counter is in downtrend. Bull move on Wednesday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had total revamps. Infosys and ICICI moved up in the ranking while SAIL moved down. The short exit level for Bajaj Auto is placed at 2705.05.

All the counters in the top-10 tradable list are down trend. There is no threat for Thursday's trading. Two buying opportunities likely in Andhra Bank. 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.