The Hindu Business Line : Bear domination

Thursday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters changed to bearish. Bull 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

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The January contract opened with a bull gap of around 15 points from its previous close. However, bulls could not sustain their initial momentum and gave way to bear pressure.

The January contract moved within a range of around 181 points and closed with a loss of around 102 points from its previous close.

Bear domination during the day reversed the long position in the January contract. 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 Friday’s trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 list had minor changes.

Bank of Baroda and National Aluminium made their ways to top-10 list pushing out MTNL and HPCL. NTPC moved one step higher in the list. GAIL moved from sixth to eighth position in the list. The short exit level for MTNL is placed at 202.85.

Except Bank of Baroda all the other uptrend counters are likely to be under threat for Friday’s trading. On the other hand, bull move on Friday is likely to terminate Reliance Industries and National Aluminium.

Buying opportunities are likely to exist in Reliance Industries and National Aluminium. Selling opportunities are likely to exist in Reliance Capital and ICICI Bank.

The best among the above is likely to be selling in Reliance Capital. This counter is in uptrend. Bear move on Friday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. ONGC made its way to top-10 list pushing out Suzlon. ICICI Bank moved from second to fifth position in the list.

The long exit level for Reliance Energy is placed at 2630.05. The short exit level for Infosys is placed at 1690.05. The long exit level for Suzlon is placed at 2130.75.

All the uptrend counters are likely to be under threat for Friday’s trading. On the other hand, bull move on Friday is likely to terminate ONGC. A lone buying opportunity is likely to exist in ONGC.

Selling opportunities are likely to exist in all the uptrend and sideways counters. The best is likely to be selling in Reliance Capital. 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.