The Hindu Business Line : Bull domination

Bull dominated over Thursday’s trading activity. The sentiment reading of the tradable counters remains bullish. Bear domination on Friday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

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The February contract opened with a bull gap of around 146 points from its previous close. The February contract moved within a range of around 150 points and closed with a gain of around 278 points from its previous close.

The long position in the February Nifty 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. BHEL made its way to top-10 list pushing out MTNL. The ranking had no changes.

Except Reliance Energy all other counters in the top-10 list are in uptrend. The uptrend counters Reliance Industries, ICICI Bank, Tata Steel and IDBI 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, ICICI Bank, Tara Steel and IDBI. The best among the above is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Friday is likely to reverse the current trend in this counter.

CASH SEGMENT

The composition and the ranking of the list had minor changes. Infosys made its way to top-10 list pushing out Tata Steel. BHEL moved from ninth to seventh position in the list. SBI and IDBI moved one step lower in the list. The long exit level for Tata Steel is placed at 768.95.

Except Reliance Energy and Infosys all the counters in the top-10 list are in up trend. The uptrend counter Reliance Industries is likely to be under threat for Friday’s trading.

A lone buying opportunity is likely to exist in Infosys. Selling opportunities are likely to exist in Reliance Industries and Infosys. The best is likely to be selling in Infosys.

This counter is in side ways mode. Bear move on Friday is likely to initiate a fresh downtrend 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.

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