The Hindu Business Line : Bear domination

Thursday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters changed to neutral. Bear move on Friday is likely to change the sentiment reading in their favour. On the contrary, the sentiment reading is likely to turn bullish.

NIFTY FUTURES

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The January contract opened with a bull gap of around 105 points from its previous close. However, bulls were not able to sustain their initial momentum and gave way to bear domination. The contract moved within a range of around 401 points and closed with a loss of around 166 points from its previous close.

The long position in the January 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 Friday’s trading activity.

STOCK FUTURES

The composition of the top-10 list had minor changes. Bank of India made its way to top-10 list pushing out MTNL. Ranking of the list had no changes. The short exit level for MTNL is placed at 136.05.

Except Reliance Energy, Reliance Industries, Reliance Capital and SBI all other counters are in downtrend. The uptrend counters Reliance Industries and SBI are likely to be under threat for Friday’s trading.

There are no buying opportunities for Friday’s trading. Selling opportunities are likely to exist in Reliance Industries and SBI. The best is likely to be selling in SBI. This counter is in uptrend. Bear move on Friday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list hade minor changes. SAIL and IDBI interchanged their positions.

Except Reliance Capital, ICICI Bank, IDBI and ONGC all other counters in the top-10 list are in uptrend. Except Reliance Energy and SAIL all other uptrend counters are likely to be under threat for Friday’s trading.

There are no buying opportunities for Friday’s trading. The selling opportunities are likely to exist in Reliance Industries, SBI, BHEL and Tata Power. The best among the above is likely to be selling in Tata Power. 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.