The Hindu Business Line : Bulls prevail

Bulls prevailed 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 bear gap of around 57 points from its previous close. However, bears could not sustain their initial momentum. The contract moved within a range of around 180 points and closed with a gain of around 71 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 activity.

STOCK FUTURES

The composition and the ranking of the top-10 list had minor changes. GAIL made its way to top-10 list pushing out Hindalco. ICICI Bank moved down from fifty to ninth position in the list. Tata Steel moved from ninth to sixth position in the list. NTPC moved one step higher in the list. The long exit level for Hindalco is placed at 195.05.

Reliance Energy and IDBI are in downtrend in the top-10 tradable list. Reliance Industries, SBI, HPCL and ICICI Bank are in uptrend in the top-10 list. The uptrend counters Reliance Industries and HPCL are likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in all the downtrend and sideways counters. Selling opportunities are likely to exist in Reliance Industries and HPCL. The best among the above is likely to be buying in Tata Steel. This counter is in sideways mode. Bull move on Thursday is likely to initiate a fresh uptrend 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 IDBI. GAIL occupied eighth position in the list. SBI moved one step lower in the list.

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