The Hindu Business Line : Bear domination

The initial bull move was arrested and bears dominated Thursday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Friday has the potential 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 May month contract opened with a bull gap of around 14 points from its previous close. However, the initial up move could not be sustained and gave way to the bears. The May month contract moved within a range of around 95 points making an intra-day high of 4134.85 and closed with a loss of around 49 points from its previous close.

The short position in the May month contract exited and initiated a fresh uptrend. The long exit and short entry levels are placed 66 points away from its last traded price. These levels are unlikely to be triggered during Friday's trading activity.

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Stock Futures: The composition and ranking of the top-10 tradable list has no changes. The top-3 tradable counters in this segment were Tata Steel, Reliance Capital and SBI.

There are seven uptrend and one downtrend counters in the top-10 tradable list. Six uptrend counters in the top 10 tradable list are under threat for Friday. Two buying and eight selling opportunities are likely to exist. The best among the above is likely to be selling in Satyam. This counter is in uptrend. Bear move on Friday is likely to reverse the trend in this counter.

Cash Segment: The composition of the top-10 tradable counters has minor changes. ONGC made its way into the top-10 tradable list pushing out Tata Motors and occupied ninth position.

There are seven uptrend and two downtrend counters in the top-10 tradable list. There are seven uptrend counters in the top 10 tradable list under threat for Friday. Eight selling and one buying opportunities are likely to exist in the list. The best candidate is likely to be selling in Reliance. This counter is in uptrend. Bear move on Friday is likely to reverse the 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.