The Hindu Business Line : Bull domination

Thursday’s market action 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 favour. On the contrary, the prevailing bullish sentiment is likely to be strengthened.

NIFTY FUTURES

The September month contract opened with a bull gap of around 11 points from its previous close. The September month contract moved within a range of around 54 points. The September month contract closed with a gain of 41 points from its previous close.

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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.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. ACC made its way to top-10 list pushing out NTPC. ACC occupied last position in the list. Reliance Industries and Reliance Energy interchanged their positions. Century Textiles and ICICIBANK interchanged their positions.

Except Tata Steel, IDBI, Century Textiles and ICICIBANK all other counters in the list are in uptrend. The uptrend counters Reliance Energy, Reliance Industries 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 the downtrend counters in the list. Buying opportunities are likely to exist in Tata Steel, IDBI and ICICIBANK. Selling opportunities are likely to exist in Reliance Energy, Reliance Industries, Century Textiles and BHEL. The best among the above is selling in BHEL. This counter is in uptrend. Bear move on Friday is likely to reverse the existing trend in this counter.

CASH SEGMENT

There are no changes in the composition of the top-10 tradable list. However, the ranking of the top-10 list had minor changes. Reliance Capital and Tata Steel interchanged their positions. Infosys and BHEL interchanged their positions. Except Tata Steel, ICICIBANK, IDBI and Infosys all other counters in the list are in uptrend. Except Reliance Capital all the other uptrend counters are under threat for Friday’s trading. On the other hand, bull domination on Friday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in Tata Steel, ICICIBANK, IDBI and Infosys. On the other hand there are ample selling opportunities for Friday’s trading. The best among the above is selling in SAIL. This counter is in uptrend. Bear 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.