The Hindu Business Line : Bear domination

Wednesday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters remains bearish. Bull move on Thursday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment reading is likely to be continued.

NIFTY FUTURES

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The November month contract opened with a bear gap of around 36 points from its previous close. The November month contract moved within a range of around 238 points. The November month contract closed with a loss of around 255 points from its previous close.

The short position in the Nifty November Month contract is intact. 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 Thursday’s trading activity.

STOCK FUTURES

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Capital and Reliance Energy interchanged their positions. All the counters in the top-10 list are in downtrend. The short exit and long entry levels of the counters are placed quite far away from their last traded price.

The nearest level among the above is likely to be buying in Reliance Industries. Bull move on Thursday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Energy moved from first to third position in the list. Reliance Industries and Reliance Capital moved one step higher in the list.

All the counters in the top-10 list are in downtrend. Bull move on Thursday is likely to terminate Infosys. There are no selling opportunities for Thursday’s trading. A lone buying opportunity is likely to exist in Infosys. This counter is in downtrend. Bull move on Thursday 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.