The Hindu Business Line : Bull domination

Bull domination continued during Thursday's trading activity. The sentiment reading of the tradable counters remains 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 21 points from its previous close. It moved within a range of around 35 points making a lifetime high of 4,244.85 and closed with a gain of around 32 points from its previous close.

The long position in the May month contract is intact. The long exit and short entry levels are placed 26 points away from its last traded price. These levels are likely 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 minor changes. Bajaj Auto made its way into the top-10 list pushing out Satyam and occupied eighth position. ACC moved to last position from eighth in the list. The top-3 tradable counters in this segment were Tata Steel, Reliance Capital and Infosys.

Except Bajaj Auto all other counters in the top-10 tradable list are in uptrend. There are four uptrend counters in the list under threat for Friday. There are five selling opportunities likely to exist in the list. The best among the above is likely to be selling in Bank of India. This counter is in uptrend. Bear move on Friday is likely to reverse the trend in this counter.

Cash Segment: The composition and ranking of the top-10 tradable counters has minor changes. Bajaj Auto and ONGC made their way into the top-10 list pushing out TCS and SAIL. Bajaj Auto occupied fourth and SAIL occupied last position in the list. Satyam moved from fifth to seventh position.

Except Bajaj Auto and Satyam all other counters are in uptrend in the top-10 tradable list. There are five uptrend counters in the list under threat for Friday. There are six selling and one buying opportunities likely to exist in the list. The best candidate is likely to be selling in Bajaj Auto. 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.