The Hindu Business Line : Bear domination

Bears dominated Thursday's trading. However, the sentiment reading of the tradable counters remains bullish. Bear move on Friday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures

The April contract opened with a bear gap of around 15 points. It moved within a range of around 34 points and closed with a loss of around 34 points from its previous close.

The long position in the April contract is exited and reversed to short position. The short exit and short 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 Friday.

Stock futures

The composition and ranking of the top-10 tradable list had minor changes. ACC and TCS went out from the top-10 tradable list and gave way to Reliance and Tata Motors. Reliance occupied third position and Tata Motors occupied last position in the top-10 tradable list. The top three tradable counters in this segment were Infosys, Tata Steel and SAIL. The short exit level for Satyam, ACC and TCS is placed at 447.75, 736.95 and 1204.8 respectively.

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There are five uptrend and five downtrend counters in the top-10 tradable list. Except Tisco and BHEL, all the counters are under threat for Friday's trading. Five opportunities exist on the buy side. On the other hand, selling opportunities are likely to exist in Reliance, Reliance Capital and Tata Motors. The best among them is likely to be selling in Reliance Capital. This counter is in uptrend. Bear move on Friday 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 of the top-10 tradable list had minor changes. ITC occupies sixth position and SAIL moved to ninth position in the top-10 tradable list.

There are five uptrend counters and four downtrend counters in the top-10 tradable list. Except Infosys, Tisco and BHEL, all the counters in the top-10 tradable list are under threat for Friday. Two buying opportunities are likely to exist in Satyam and TCS. Three opportunities exist in the sell side. The best among them is likely to be buying in Reliance. This counter is in downtrend. Bull move on Friday is likely to reverse the prevailing trend in this counter. The short exit level for Satyam is placed at 448.05.

(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.