The Hindu Business Line : Bear domination

Wednesday’s trading activity witnessed a bear domination. The sentiment reading of the tradable counters changed to 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 strengthened with additional counters.

NIFTY FUTURES

The August month contract opened with a bear gap of around 47 points from its previous close. The August contract moved within a range of around 261 points and closed with a loss of 207 points from its previous close.

Bear domination during the day initiated a fresh downtrend in the August contract. The short exit and long entry levels are placed quite 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 top-10 list had minor changes. Century Textiles moved from eighth to last position in the list. ICICI BANK and Hindalco moved one step higher in the list.

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All the counters in the list are in downtrend. Bull domination on Thursday is likely to terminate Century Textiles. A lone buying opportunity is likely to exist in Century Textiles for Thursday’s trading. The best is likely to be buying in Century Textiles.

This counter is in downtrend. Bull move on Thursday is likely to reverse the existing trend in this counter.

CASH SEGMENT The composition and the ranking of the top-10 tradable list had minor changes. Satyam made its way to top-10 list pushing out ACC. Satyam occupied last position in the list. Reliance Energy and Reliance Capital interch anged their positions in the list. SBI, BHEL, Tata Steel and ITC moved one step higher in the list.

Except SBI and BHEL all other counters in the list are in downtrend. The uptrend counters SBI and BHEL are under threat for Thursday’s trading. On the other hand, bull domination on Thursday is likely to terminate ITC and Satyam. Buying opportunities are likely to exist in ITC and Satyam.

Selling opportunities are likely to exist in SBI and BHEL. The best among the above is likely to be selling in SBI. This counter is in uptrend. Bear 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.