The Hindu Business Line : Bull domination

Bulls dominated Thursday's trading activity. The sentiment reading of the tradable counters changed to neutral. Bull move on Friday is likely to change the sentiment reading in their favor. On the contrary, bear move may turn the sentiment reading to bearish.

NIFTY FUTURES

The March contract opened with a bear gap of around 4 points from its previous close. However the bears could not sustain their initial momentum and gave way to bulls.

The March contract moved within a range of around 75 points making an intraday high of 3815. The March contract closed with a gain of around 44 points from its previous close.

Due to expiry, the position in the March contract was allowed to expire in the market. Fresh entry levels are provided for April contract. Bull move on Friday is likely to initiate a fresh uptrend in April contract.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Satyam gave way to Bank of India. Bank of India occupied tenth position in the ranking.

Reliance Capital and Tata Motors moved up in the ranking while ICICI and Tata Steel moved down.

The top-3 tradable counters in this segment were Reliance Industries, SBI and Tata Steel.

Due to expiry all the positions were allowed to expire in the market. Fresh entry levels are given for the April month contract. The best among them is likely to be buying in Reliance Capital. This counter is in sideways mode. Bull move on Friday is likely to initiate a fresh uptrend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. TCS moved up in the ranking while Satyam moved down.

There are seven downtrend counters and two uptrend counters in the top-10 tradable list. Except Tata Motors, other downtrend counters are likely to be under threat for Friday's trading. On the other hand, both the uptrend counters are likely to be terminated. There are seven buying opportunities and two selling opportunities for Friday's trading.

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The best among them is likely to be buying in SBI. 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.