The Hindu Business Line : Sideways movement

Wednesday’s trading activity witnessed sideways movement. However, the sentiment reading of the tradable counters changed slightly bearish. Bull move on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

NIFTY FUTURES

The July month contract opened with a bear gap of 33 points from its previous close. It contract moved within a range of around 36 points and closed with a loss of 8 points from its previous close.

The long position in the July contract was exited and initiated a fresh downtrend. The short exit and long entry levels are placed near to its last traded price. These levels are likely to be triggered during Thursday’s trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. BHEL made its way to top-10 list pushing out ONGC in the list. . Tata Steel moved up from sixth to fourth position in the list. ACC moved one step lower in the list. Century Textiles moved one step higher in the list. Reliance moved down from fifth to seventh position in the list.

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Reliance Capital, SBI, IDBI and ICICI Bank are in downtrend. Tata Steel, ACC, Century Textiles, Reliance Industries and Bank of India are in uptrend. In the uptrend counters Reliance Industries is likely to be under threat for Thursday’s trading. On the other hand, bull domination on Thursday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in Reliance Capital, SBI, IDBI, ICICI Bank and BHEL for Thursday’s trading. Selling opportunities are likely to exist in Reliance Industries and BHEL. The best is likely to be buying in BHEL. This counter is in sideways. Bull move on Thursday is likely to initiate a fresh uptrend in this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. However the ranking of the top-10 list had minor changes. Infosys moved from fifth to first position in the list. Except ACC, Reliance Industries, Tata Steel and BHEL all other counters in the list are in downtrend. In the uptrend counters Reliance Industries is under threat for Thursday’s trading. On the other hand, Bull domination on Thursday is likely to terminate all the downtrend counters except Infosys and Satyam. Buying opportunities are likely to exist in SBI, ACC, IDBI, ICICI Bank, BHEL and TCS. The selling opportunities are likely to exist in Reliance Industries and BHEL. The best among the above is likely to be buying in IDBI. This counter is in downtrend. Bull move on Thursday is likely to reverse the existing 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.