The Hindu Business Line : Bulls prevail

Bulls prevailed during Thursday’s trading activity. 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, prevailing bullish sentiment is likely to be unchanged.

NIFTY FUTURES

The September month contract opened with a bull gap of around 17 points from its previous close. The September month contract moved within a range of around 39 points. The September month contract closed with a gain of 5 points from its previous close.

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The long position in the September month Nifty 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 of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Reliance Energy and SBI interchanged their positions. Tata Steel and Reliance Industries interchanged their positions. The long exit level for BHEL is placed at 1931.45.

Except NTPC, all other counters in the list are in uptrend. Except Reliance Capital, Reliance Energy, Reliance Industries and ICICI Bank all other uptrend counters are likely to be under threat for Friday’s trading. There are no buying opportunities for Friday’s trading. Selling opportunities are likely to exist in SBI, Tata Steel, IDBI, Century Textiles and ACC. The best among the above is likely to be selling in ACC. This counter is in uptrend. Bear move on Friday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However the ranking of the tradable counters had minor changes. SBI moved from fourth to sixth position in the list. Reliance Energy and Tata Steel moved one step higher in the list.

Except Infosys all other counters in the list are in uptrend. Except Reliance Industries, Reliance Capital, ICICI Bank and Reliance Energy all other uptrend counters are likely to be under threat for Friday’s trading. A lone buying opportunity is likely to exist in Infosys. Selling opportunities are likely to exist in Tata Steel, SBI, SAIL, IDBI and HDFC. The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Friday 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.