The Hindu Business Line : Bear run arrested

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 January contract opened with a bull gap of around 185 points from its previous close. The January contract moved within a range of around 407 points and closed with a gain of around 269 points from its previous close.

Bull move during the day reversed the short position in the January contract. 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 no changes. There are five uptrend and five downtrend counters in the top-10 list.

The uptrend counter Tata Steel is likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely terminate Reliance Industries. A lone buying opportunity is likely to exist in Reliance Industries. A lone selling opportunity is likely to exist in Tata Steel. The best is likely to be selling in Tata Steel.

This counter is uptrend. Bear move on Thursday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. SBI made its way to top-10 list pushing out Tata Steel.

ONGC moved from fifth to seventh position in the list.

IDBI and SAIL moved one step higher in the list. The short exit level for ITC is placed at 200.05. The long exit level for Tata Steel is placed at 684.95.

Except Reliance Capital, IDBI and ONGC all other counters in the top-10 list are in uptrend.

The exit and entry levels are placed quite far away from their last traded price. The nearest level among the above is likely to be selling level in ICICI Bank.

This counter is in uptrend. Bear 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.