The Hindu Business Line : Bull domination

Bulls dominated over Wednesday’s trading activity. The sentiment reading of the tradable counters remains bullish. Bear move on Thursday 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

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The December contract opened with a bull gap of around 4 points from its previous close. The contract moved within a range of around 103 points and closed with a gain of around 103 points from its previous close.

The long position in the December Nifty contract is intact. 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 Thursday’s trading.

STOCK FUTURES

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Industries and Reliance Capital interchanged their positions. The long exit level for BHEL is placed at 2799.95.

Except Reliance Energy, Reliance Capital and Reliance Industries all other counters in the list are in uptrend. The uptrend counters NTPC and Tata Steel are likely to be under thereat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate all downtrend counters.

Buying opportunities are likely to exist in Reliance Energy, Reliance Capital and Reliance Industries. Selling opportunities are likely to exist in NTPC and Tata Steel. The best among the above is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Thursday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. GAIL made its way to top-10 list pushing out Tata Power. GAIL occupied last position in the list. Reliance Energy and Reliance Industries interchanged their positions. BHEL moved from seventh to ninth position in the list. SBI and IDBI moved one step higher in the list. The long exit level for Suzlon is placed at 1872.15. The long exit level for Tata Power is placed at 1206.60.

Reliance Energy, Reliance Industries, Infosys and BHEL are in downtrend in the top-10 list. ICICI Bank, SAIL, SBI, IDBI and GAIL are in uptrend in the top-10 list. The uptrend counters ICICI Bank and SAIL are likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate all downtrend counters. Buying opportunities are likely to exist in all downtrend and sideways counters. Selling opportunities are likely to exist in Reliance Capital, ICICI Bank and SAIL. The best among the above is likely to be buying in Reliance Industries. 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.