The Hindu Business Line : Bears prevail

Bears prevailed over Wednesday’s trading activity. 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 strengthened with additional counters.

NIFTY FUTURES

The January contract opened with a bear gap of around 87 points from its previous close. The January contract moved within a range of around 162 points and closed with a loss of around 124 points from its previous close.

Click here for table

The short position in the January 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 major changes. Reliance Energy, NTPC, Reliance Capital, Bank of India, IDBI and SBI made their ways to top-10 list pushing out ACC, Jet Airways, Century Textiles, BPCL, PNB and Tata Tea. The ranking of the top-10 list is totally revamped. The short exit level for ACC and Tata Tea are placed at 951.55 and 843.55 respectively.

Except Bank of India and IDBI all other counters in the top-10 list are in downtrend. Bull move on Thursday is likely to terminate all the downtrend counters except Reliance Energy and NTPC. Buying opportunities are likely to exist in Reliance Capital, Reliance Industries, Tata Steel, IDBI, SBI, ICICI Bank and BHEL. There are no selling opportunities for Thursday’s trading.

The best among the above is likely to be buying in SBI. This counter is in downtrend. Bull move on Thursday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had major changes. Reliance energy, Reliance Capital, BHEL, Bank of India and IDBI made their ways to top-10 list pushing out Satyam, Cipla, TCS, ONGC and Hindalco. The ranking of the top-10 list is totally revamped. The short exit level for Satyam, TCS, ONGC and Hindalco are placed at 406.25, 966.75, 1295.05 and 196.65 respectively.

Except Bank of India and IDBI all other counters are in downtrend. Bull move on Thursday is likely to terminate Reliance Industries, Reliance Capital and ICICI Bank. Buying opportunities are likely to exist in Reliance Industries, Reliance Capital, ICICI Bank and IDBI. There are no selling opportunities for Thursday’s trading. The best is likely to be buying in IDBI. This counter is in downtrend. Bull move on Thursday 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.