The Hindu Business Line : Bulls prevail

Bulls prevailed over Wednesday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear move on Thursday is likely to change the current sentiment. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

NIFTY FUTURES

The June month contract opened with a bull gap of around 14 points from its previous close. The contract moved within a range of around 36 points, and closed with a gain of around 27 points from its previous close.

The long position in the nifty futures June month contract is intact. The long exit and short entry levels are placed nearer to its last traded price. These levels are likely 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. Reliance and SBI interchanged their position. Century Textiles and Hindalco interchanged their positions. ICICI Bank and Tata Motors interchanged their positions.

Click here for table

All the counters in the top-10 list are in uptrend. Except Reliance Capital, SBI and IDBI, all other uptrend counters are under threat for Thursday's trading.

Selling opportunities are likely to exist in Reliance Industries, Tata Steel, Satyam, Hindalco, Century Textiles, Tata Motors and ICICI Bank. The best among these is selling in Satyam. This counter is in uptrend. The bear move on Thursday is likely to reverse the current position in this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. The ranking of the top-10 tradable list had minor changes. SBI moved up from fourth to second position and pushed Reliance Industries and Tata Steel to one step down in the list. IDBI moved up from eighth to sixth position and pushed Satyam and Tata Motors to one step down in the list.

Except Infosys, all other counters in the top-10 list are in uptrend. In the uptrend counters, Reliance Industries, Tata Steel, SAIL, Satyam, BHEL and Hindalco are under threat for Thursday's trading. The buying opportunity exists in the Infosys. The selling opportunities are likely to exist in Reliance Industries, Tata Steel, SAIL, Satyam, BHEL and Hindalco. The best candidate is likely to be selling in Satyam. 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.