The Hindu Business Line : Bear domination

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

NIFTY FUTURES

The June month contract opened with a bear gap of around six points from its previous close. The June contract moved within a range of around 118 points making an intra-day low of 4,298.05 and closed with a loss of around 115 points from its previous close.

The short position in the June contract is intact. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be trigger during Thursday's trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. ONGC made its way to top-10 tradable list pushing out Satyam and occupied last position. Tata Steel and Reliance interchanged their position. The top-3 tradable counters in this segment were SBI, Reliance Capital and Reliance.

Except SBI, Bajaj Auto and IDBI, all the counters in the top-10 tradable list are in downtrend. All the uptrend counters in the list are under threat for Thursday's trading.

There are three selling opportunities likely to exist in the list. The best candidate is to selling in Bajaj Auto. This counter is in uptrend. Bear move on Thursday is likely reverse the trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list has no changes. However, the ranking in the list had minor changes. Bajaj Auto and Reliance interchanged their position. Also SAIL and ICICI Bank interchanged their position.

Click here for table

There are four uptrend and four downtrend counters likely to exist in the top-10 tradable list. All the uptrend counters in the list are under threat for Thursday's trading. There are six selling and one buying opportunities likely to exist in the list.

The best among these is likely to be selling in Infosys. This counter is in uptrend. Bear move on Thursday is likely to reverse the existing 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.