The Hindu Business Line : Bull domination

Bulls dominated over Wednesday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear move on Thursday 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 5 points from its previous close. It moved within a range of around 80 points making an intra-day high of 4198 and finished with a gain of around 65 points from its previous close.

The short position in the May month contract is exited, initiating a fresh uptrend. The long exit and short entry levels are placed 29 points away from its last traded price. These levels are likely to be triggered during Thursday's trading activity.

Click here for table

Stock Futures: The composition of the top-10 tradable list has no changes. However, there is a minor change in the ranking due to SBI, which moved from the third to first position in the list. The top-3 tradable counters in this segment were SBI, Reliance and CenturyTex.

Except Tata Steel and Satyam all other counters in the top-10 tradable list are in uptrend. There are four uptrend counters in the list under threat for Thursday. There are two buying and four selling opportunities likely to exist in the list. The best among the above is likely to be buying in Satyam. This counter is in downtrend. Bull move on Thursday is likely to reverse the trend in this counter.

Cash Segment: The composition of the top-10 tradable counters has no changes. However, there is a minor change in the ranking. Reliance and Tata Steel interchanged their position. ICICI moved from sixth to fourth position in the list.

Except Tata Steel, Satyam and Infosys, all other counters are in uptrend in the top-10 tradable list. There are five uptrend counters in the list under threat for Thursday. There are three buying and five selling opportunities likely to exist in the list. The best candidate is likely to be selling in ACC. This counter is in uptrend. Bear move on Thursday 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.