The Hindu Business Line : Bull domination

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

Nifty futures: The August month contract opened with a bull gap of around 34 points from its previous close. The August month contract moved within a range of around 98 points. The August month contract closed with a gain of 114 point from its previous close.

The long position in the August Month Nifty Futures contract is undisturbed. The long exit and short entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Thursday’s trading activity.

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Stock futures: The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. ACC and IDBI interchanged their positions in the list.

Except Hindalco, all other counters in the list are in uptrend. Except IDBI, all the uptrend counters are likely to be under threat for Thursday’s trading. There are no buying opportunities for Thursday’s trading. Selling opportunities are likely to exist in Reliance Industries, SBI, Reliance Capital, Reliance Energy, Tata Steel, ACC, ICICI Bank and BHEL. The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear 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. IDBI made its way to top-10 list pushing out ACC. IDBI occupied ninth position in the list. Infosys moved from fourth to sixth position in the list. Reliance capital and SAIL moved one step higher in the list. Tata Steel moved one step lower in the list. The short exit level for Hindalco is placed at 172.55. The long exit level for ACC is placed at 994.95.

Except ITC, all other counters in the list are in uptrend. Except Reliance Industries, Infosys and IDBI, all other uptrend counters are likely to be under threat for Thursday’s trading. The lone downtrend counter ITC is likely to be safe for Thursday’s trading. There are no buying opportunities for Thursday’s trading. Selling opportunities are likely to exist in Reliance Energy, SBI, Reliance Capital, SAIL, BHEL and Tata Steel. The best among the above is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Thursday 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.