The Hindu Business Line : Bear domination

Bear dominated over Thursday’s trading activity. The sentiment reading of the tradable counters changed to bearish. Bull move on Friday is likely to change the sentiment reading in their favour. On the contrary the current sentiment reading is likely to be strengthened with additional counters.

Nifty Futures

Click here for table

The November month contract opened with a bull gap of around 83 points from its previous close. However, the initial momentum of bull is not able to sustain and gave way to bear. The November month contract moved within a range of around 205 points. The November month contract closed with a loss of around 86 points from its previous close.

Bear domination during the day terminated the long position in the Nifty November Month contract and initiated a fresh downtrend. The short exit and long 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 and the ranking of the top 10 list had no changes. Except SBI, Tata Power, BHEL and ICICI Bank all other counters in the top-10 list are in downtrend. Except 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 Power and BHEL. The best is likely to be selling in BHEL. This counter is in uptrend. Bear domination on Friday is likely to reverse the existing trend in this counter.

Cash segment

The composition and the ranking of the top-10 list had no changes. Reliance Energy, Reliance Industries, Reliance Capital and Tata Steel are in downtrend in the top-10 list. Tata Power, ICICI Bank, SBI, BHEL and ONGC are in uptrend in the top-10 list. The uptrend counters SBI and BHEL 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 SAIL, SBI and BHEL. The best is likely to be selling in SBI. 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.