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 strengthened.

NIFTY FUTURES

The March contract opened with a bear gap of around 26 points from its previous close. The March contract moved within a range of around 114 points making an intra-day high of 3804. The March contract closed with a gain of around 58 points from its previous close.

The short position in the March contract remains intact and has a locked profit of around 110 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 Friday's trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. IDBI, Century Textiles, ICICI, Reliance Industries, Reliance Capital and Hindalco moved up in the ranking while Tata Steel moved down. The top-3 tradable counters in this segment were Reliance, IVRCL and SBI.

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All the counters in the list are in downtrend. Tata Steel is likely to be under threat for Friday's trading. A lone buying opportunity is likely to exist in Tata Steel. 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. Andhra Bank and SAIL gave way to Satyam and ACC. Most of the counters moved up in the ranking while Tata Steel moved down. The short exit level for Bajaj Auto and SAIL are placed at 2644.55 and 110.10 respectively. The long exit level for Andhra bank is placed at 76.15.

Most of the counters in the top-10 tradable list are downtrend. Except Infosys, Zee Telefilms and ACC, other downtrend counters are likely to be under threat on Friday's trading.

On the other hand, the lone uptrend counter 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 ICICI. 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.