The Hindu Business Line : Bulls prevail

Bulls prevailed during Wednesday’s trading activity. 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.

Nifty Futures: The August month contract opened with a bear gap of around 59 points from its previous close and moved within a range of around 143 points. It closed with a gain of around 62 points from its previous close.

The long position in the August Month Nifty Futures contract is reversed and the short position is exited. The long entry level is placed nearer to its last traded price. The short entry level is placed quite far away from its last traded price. Bull move on Thursday is likely to initiate a fresh uptrend.

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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. IDBI and Tata Steel interchanged their positions.

Reliance Capital, Reliance Industries, Tata Steel and BHEL are in uptrend in the list. IDBI and ACC are in downtrend. The uptrend counter Reliance Industries is under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate both the downtrend counters. Buying opportunities are likely to exist in SBI, IDBI, Reliance Energy, Century Textiles and ACC.

Selling opportunity is likely to exist in Reliance Industries. The best among the above is likely to be buying in SBI. This counter is in sideways mode. Bull move on Thursday is likely to initiate a fresh uptrend in this counter.

Cash Segment: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Steel moved from fifth to third position in the list. ICICI Bank and Reliance Capital moved one step low er in the list. BHEL and IDBI interchanged their positions.

Reliance Industries, Tata Steel, BHEL and Satyam are in uptrend. ICICI Bank, Infosys and IDBI are in downtrend. In the uptrend counters, Reliance Industries and Satyam are 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 SBI, ICICI Bank, Reliance Capital, Infosys, Reliance Energy and IDBI. Selling opportunities are likely to exist in Reliance Industries and Satyam. The best among the above is likely to be buying in ICICI Bank. This counter is in downtrend. Bull move on Thursday is likely to reverse the prevailing 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.