The Hindu Business Line : Bull domination

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

Nifty Futures

The September contract opened with a bear gap of around 7 points from its previous close. It moved within a range of around 97 points and closed with a gain of around 75 points from its previous close. The long position in the September month contract is undisturbed. The long exit and short entry levels are placed 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 first to third position in the list. Reliance Capital and Tata Steel moved one step higher in the list. SBI and IDBI interchanged their positions.

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Except Reliance Industries and Century Textiles all other counters in the list are in uptrend. The uptrend counters Reliance Capital and ICICIBANK are likely to be under threat for Friday’s trading. On the other hand, bull domination on Friday is likely to terminate Reliance Industries and Century Textiles. Buying opportunities are likely to exist in Reliance Industries and Century Textiles. Selling opportunities are likely to exist in Reliance Capital and ICICI Bank. The best among the above is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Friday is likely to reverse the prevailing trend in this counter.

Cash Segment

The composition and the ranking of the top-10 tradable list had minor changes. SAIL made its way to top-10 list pushing out Satyam. SBI and Reliance Capital interchanged their positions. Reliance Energy moved from eighth to sixth position in the list. IDBI and Infosys moved one step lower in the list. The short exit level for Satyam is placed at 455.50.

Except Reliance Industries, ICICI Bank and Infosys all other counters in the list are in uptrend. The uptrend counters SBI and BHEL are likely to be under threat for Friday’s trading. On the other hand, bull domination on Friday is likely to terminate all downtrend counters in the list. Buying opportunities are likely to exist in Reliance Industries, ICICI BANK and Infosys. Selling opportunities are likely to exist in SBI and BHEL. The best among the above is likely to be buying in ICICI BANK. This counter is in downtrend. Bull move on Friday 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.