The Hindu Business Line : Bull domination

Thursday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters changed to bullish. Bear move on Friday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures: The July month contract opened with a bull gap of around 9 points from its previous close. The July month contract moved within a range of around 65 points. The July month contract closed with a gain of 72 points from its previous close.

The short position in the July month contract is exited and initiated a fresh uptrend. The long exit and short entry levels are quite far away from its last traded price. These levels are unlikely to be triggered during Friday’s trading activity.

Stock futures: The composition of the top-10 tradable list had no changes. However the ranking of the top-10 list had minor changes. Reliance Industries moved from fourth to first position in the list. SBI, IDBI and ACC moved one step lower in the list. Reliance Capital and Tata Steel, Hindalco and Century Textiles interchanged their position in the list.

Except IDBI all other counters in the top-10 list are in uptrend. Except Reliance Industries all other uptrend counters are under threat for Friday’s trading. Selling opportunities are likely to exist in SBI, IDBI, ACC, Tata Steel, Reliance Capital, Hindalco, Century Textiles, ICICI Bank and Bank of India. The best is likely to be selling in IDBI. This counter is in sideways mode. Bear move on Friday is likely to initiate a fresh downtrend in this counter.

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Cash segment: The composition of the top-10 tradable list had no changes. However the ranking of the top-10 list had minor changes. Reliance Industries moved form fifth to first position in the list. ACC moved from first to third. SAIL moved from second to fourth position in the list. SBI moved one step lower in the list. TCS and BHEL interchanged their position in the list. The long exit level form Tata Steel is placed at 678.60.

Except IDBI and Satyam all other counters are in uptrend. Except Reliance Industries all other uptrend counters are under threat for Friday’s trading. On the other hand, bull domination on Friday is likely to terminate Satyam. Buying opportunity is likely to exist in Satyam. Selling opportunities are likely to exist in Infosys, ACC, SAIL, SBI, Hindalco, TCS and BHEL. The best among the above is likely to be buying in Satyam. This counter is in downtrend. Bull move on Friday is likely to reverse the 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.