The Hindu Business Line : Bear domination

Bear 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

The November month contract opened with a bear gap of around 14 points from its previous close. The contract moved within a range of around 77 points. The contract closed with a loss of around 46 points from its previous close. The long position in the Nifty November Month contract is intact. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Friday’s trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 list had minor changes. Bank of India made its way to top-10 list pushing out Tata Power. Bank of India occupied last position in the list. Tata Steel and ICICI Bank moved one step lower in the list. BHEL moved from ninth to seventh position in the list. The long exit level for Tata Power is placed at 1332.05.

Except Reliance Energy, SBI and BHEL all other counters in the top-10 list are in uptrend. The uptrend counters Reliance Industries, Tata Steel, ICICI Bank and Bank of India are likely to be under threat for Friday’s trading. On the other hand, bull move on Friday is likely to terminate BHEL. A lone Buying opportunity is likely to exist in BHEL. Selling opportunities are likely to exist in Reliance Industries, Tata Steel, ICICI Bank and Bank of India. The best is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move 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 minor changes. HDFC and IDBI made their ways to top-10 list pushing out ONGC and Tata Steel. HDFC occupied eighth position in the list. IDBI occupied ninth position in the list.

SAIL and BHEL interchanged their positions. Tata Power moved from eighth to last position in the list. The long exit level for ONGC is placed at Rs 1,230.30. The long exit level for Tata Steel is placed at Rs 853.05.

Except Reliance Energy, SBI, BHEL and Tata Power all other counters in the list are in uptrend. Except Reliance Capital all other uptrend counters are likely to be under threat for Friday’s trading. On the other hand, bull domination on Thursday is likely to terminate SBI and BHEL.

Buying opportunities are likely to exist in SBI and BHEL. Selling opportunities are likely to exist in Reliance Industries, ICICI Bank, SAIL, HDFC and IDBI.

The best is likely to be selling in Reliance Industries. 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.