The Hindu Business Line : Bear domination

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 strengthened with additional counters.

NIFTY FUTURES

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The December contract opened with a bull gap of around 43 points from its previous close. The December contract moved within a range of around 166 points and closed with a gain of around 16 points from its previous close.

The short position in the December Nifty 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. SBI moved from seventh to ninth position in the top-10 list. ICICI Bank and GAIL moved one step higher in the list.

Except Reliance Energy, Tata Steel, GAIL and MTNL all other counters in the top-10 list are in downtrend.

Bull move on Thursday is likely to terminate Reliance Industries, NTPC and ICICI Bank. Buying opportunities are likely to exist in Reliance Industries, Tata Steel, NTPC and ICICI Bank. Selling opportunities are likely to exist in Tata Steel and GAIL. The best among the above is likely to buying in ICICI Bank.

This counter is in downtrend. Bull move on Thursday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition of the top-10 list had minor changes. Tata Steel and HDFC made their ways to top-10 list pushing out SBI and BHEL. Tata Steel and HDFC occupied eighth and ninth positions respectively. The short exit levels for SBI and BHEL are placed at 2350.75 and 2521.30 respectively.

Except Reliance Energy, GAIL, Infosys and Suzlon all other counters in the top-10 list are in downtrend.

The uptrend counters Infosys and Suzlon are likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate ICICI Bank, SAIL and Tata Steel. Buying opportunities are likely to exist in ICICI Bank, SAIL and Tata Steel.

Selling opportunities are likely to exist in GAIL, Infosys and Suzlon. The best is likely to be selling in Infosys.

This counter is in uptrend. Bear 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.