The Hindu Business Line : Bear domination

Bears dominated Wednesday's trading activity. The sentiment reading of the tradable counters changed to 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 March contract opened with a bear gap of around 96 points from its previous close. The March contract moved within a range of around 93 points making an intraday low of 3586.15. The March contract closed with a loss of around 167 points from its previous close.

The long position in the March contract exited and entered short. 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 and ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Reliance Industries, ACC and Century Textiles. The short exit level for Hindalco is placed at 127.55.

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Most of the counters in the top-10 tradable list are in downtrend. Except TCS and ICICI Bank, other downtrend counters are likely to be under threat for Thursday's trading. There are ample buying opportunities for Thursday's trading. The best among them is likely to be buying in ACC. This counter is in downtrend. Bull move on Thursday is likely to reverse prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. While ITC moved up in the ranking, TCS moved down. Most of the counters in the top-10 tradable list are in downtrend. Except Infosys, other downtrend counters are likely to be under threat for Thursday's trading. There are ample buying opportunities and a lone selling opportunity for Thursday's trading. The best among them is likely to be selling in TCS. This counter is in sideways mode. Bear move on Thursday is likely to initiate a fresh downtrend 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.