The Hindu Business Line : Bears prevail

Bears prevailed over Wednesday's trading activity. However, sentiment reading of the tradable counters turned bullish. Bear move on Thursday has the potential to change the sentiment reading bearish. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The June month contract opened with a bear gap of around 17 points from its previous close. The June month contract moved within a range of around 61 points making an intra-day high of 4142. The June month contract closed with a loss of around 65 points from its previous close.

The short position in the June month contract is intact with a huge locked profit of 134 points. 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.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Steel moved down from fourth to second position and pushed Reliance Industries and SBI one step down in the list. ICICI Bank and Hindalco interchanged their position.

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Except SBI, Bajaj Auto and Satyam Computers all other counters in the top-10 tradable list are in uptrend. Bear move on Thursday is likely to terminate all the uptrend counters in the list other than Hindalco. On the contrary, Satyam computer is likely to be exited. Buying opportunities are likely to exist in Bajaj Auto and Satyam. Selling opportunities are likely to exist in Reliance Capital, Tata Steel, Reliance Industries, Bajaj Auto, IDBI, Century Textiles and ICICI Bank. The best among the above is likely to be selling in ICICI Bank. This counter is in up trend. Bear move on Thursday has the potential to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Motors and Satyam interchanged their position.

All the uptrend counters in the list are likely to be under threat for Thursday's trading. On the other hand Bajaj Auto, BHEL & Tata Motors are likely to be terminated. Buying opportunities exist in Bajaj Auto, Infosys, Tata Motors and BHEL. Selling opportunities are likely to exist in Reliance Industries, Tata Steel, SAIL, Satyam and IDBI. The best is likely to be selling in Reliance Industries. 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.