The Hindu Business Line : Bear domination

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

The February contract opened with a bear gap of around 43 points from its previous close. The February contract moved within a range of around 143 points and closed with a loss of around 131 points from its previous close.

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Bear move during the day reversed the long position in the February Nifty contract. The short exit and long entry levels are placed quite far away from its last traded price. Bull move on Thursday is unlikely to reverse the existing position in Nifty contract.

STOCK FUTURES

The composition of the top-10 list had minor changes. ONGC made its way to top-10 list pushing out IDBI. The ranking had no changes. The long exit level for BHEL is placed at 2068.55.

Except Hindalco and Infosys all other counters in the top-10 list are in downtrend. The uptrend counter Infosys is likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate Reliance Industries, NTPC, ICICI Bank, SBI and ONGC.

Buying opportunities are likely to exist in Reliance Industries, NTPC, ICICI Bank, SBI and ONGC. A lone selling opportunity is likely to exist in Infosys. The best among the above is likely to be selling in Infosys. This counter is in 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 list had minor changes. Tata Steel made its way to top-10 list pushing out HDFC. Suzlon moved from eighth to sixth position in the list. BHEL moved one step lower in the list. SBI moved from seventh to ninth position in the list. The short exit level for HDFC is placed at 2840.05.

Except BHEL and Infosys all other counters in the top-10 list are in downtrend. All the uptrend counters are likely to be under threat for Thursday’s trading.

On the other hand, bull move on Thursday is likely to terminate Reliance Industries, ICICI Bank, Suzlon and SBI. Buying opportunities are likely to exist in Reliance Industries, ICICI Bank, Suzlon and SBI. Selling opportunities are likely to exist in BHEL and Infosys. The best is likely to be selling in Infosys. 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.