The Hindu Business Line : Bear run arrested

Despite late hour recovery, the sentiment reading of the tradable counters remain bearish. Bull move on Thursday has the potential 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 May month contract opened with a bear gap of around 30 from its previous close. The May month contract moved within a range of around 78 points making an intraday high of 4102.95. The May month contract closed with a gain of around 17 points from its previous close.

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The short position in the May month contract remains intact locking in a profit of around 27 points. The short exit and long entry levels are placed quite near from its last traded price. These levels are likely to be trigger during Thursday's trading activity.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, there is a minor change in ranking. ICICI moved from sixth to fourth poison. The top-3 tradable counters in this segment were Reliance, ICICI and Tata Steel.

Except Satyam, ACC, Century Tex all other counters in the top 10 tradable list are in downtrend. In the top-10 list Satyam is under threat for Thursday. There are six buying and one selling opportunities for Thursday's trading. The best among the above is likely to be buying in Tisco. This counter is in downtrend. Bull move on Thursday is likely reverse the prevailing trend in this counter.

Cash segment

The composition and ranking of the top-10 tradable list has minor changes. ICICI made its way and occupied seventh position in the top 10 tradable lists pushing out Tata Motors. SAIL and SBI interchanges their position.

Except Satyam, Infosys , TCS all other counters in the top 10 tradable list are in downtrend. Satyam and Infosys in the top-10 list are under threat. There are eight buying and two selling opportunities likely to exist in the top 10 list. The best candidate is likely to be buying in Reliance. This counter is in downtrend. Bull move on Thursday is likely to reverse the position 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.