The Hindu Business Line : Bear domination

Bears dominated Wednesday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull move on Thursday has the potential to change the sentiment reading in their favour. On the contrary, the prevailing bearish is likely to be further strengthened with additional counters.

Nifty Futures: The May contract opened with a bear gap of around 26 points from the previous close. It moved within a range of 60 points, clocking an intra-day high of 4,295 before closing with a loss of 56 points.

It is initiating fresh short entry. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Thursday's trading activity.

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Stock Futures: The composition and the ranking of the top 10 tradable list saw no changes. The top three tradable counters were Reliance, SBI and Tata Steel.

There are five uptrend and downtrend counters in the list. The five uptrend counters are under threat for Thursday. The best bet is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Thursday is likely to reverse the trend in this counter.

Cash Segment: The composition of the top 10 tradable list saw no changes. However, the ranking had minor changes. ICICI Bank and BHEL interchange their positions.

SAIL and TCS also interchange their positions.

The long exit level for Tata Motors is placed at Rs 735.95.

There are four uptrend and five downtrend counters are in the list. Among the uptrend counters, Reliance, SBI and BHEL are under threat for Thursday.

There are four buying and six selling opportunities likely in the list. The best candidate is likely to be selling in Tata Steel. This counter is in sidewise mode. Bear move on Thursday is likely to initiate a fresh downtrend 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.