The Hindu Business Line : Bear domination

Thursday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters changed to bearish. Bull move on Friday is likely to change the sentiment reading in its favour. On the contrary, the prevailing bearish sentiment is likely to continue.

Nifty Futures

The August month contract opened with a bear gap of around 183 points from its previous close. It moved within a range of around 114 points. The August month contract closed with a loss of around 202 points from its previous close.

Bear domination during the day initiated a fresh downtrend in the August month Nifty Futures contract. The short exit and long entry levels are placed 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 Capital and Reliance Industries interchanged their positions.

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All the counters in the list are in downtrend. Bull move on Friday is likely to terminate Reliance Industries, ICICI Bank, ACC and BHEL. Buying opportunities are likely to exist in Reliance Industries, ICICI Bank, ACC and BHEL. There are no selling opportunities for Friday’s trading. The best among them is likely to be buying in ICICI Bank. This counter is in downtrend. Bull move on Friday is likely to reverse the existing trend in this counter.

Cash Segment

The composition and ranking of the top-10 tradable list had minor changes. Tata Steel made its way to top-10 list pushing out HDFC. It occupied sixth position in the list. Reliance Capital and SBI interchanged their positions. IDBI moved from sixth to eighth position. ICICI Bank and ITC moved one step down. The short exit level for HDFC is placed at 1,944.95.

All the counters in the list are in downtrend. Bull move on Friday is likely to terminate SBI, Infosys, BHEL, IDBI and ICICI Bank. Buying opportunities are likely to exist in SBI, Infosys, BHEL, IDBI and ICICI Bank. There are no selling opportunities for Friday’s trading. The best among the above is likely to be buying in Infosys. This counter is in downtrend. Bull move on Friday 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.