The Hindu Business Line : Bears prevail

Bear domination 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 March contract opened with a bull gap of around 129 points from its previous close. However, bulls could not sustain their initial momentum and gave way to bears during the later part of the day’s trading. The March contract moved within a range of around 142 points.

The March month contract closed with a gain of around six points from its previous close.

The downtrend in the Nifty March 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.

Stock Futures

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Tata Steel and ICICI Bank interchanged their position.

Except Reliance Capital, Tata Steel, ICICI Bank, SBI and Infosys, all other counters in the top-10 list are in uptrend. All the uptrend counters are likely to be under threat for Thursday’s trading.

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There are no buying opportunities for Thursday’s trading. Selling opportunities are likely to exist in all the uptrend and sideways counters.

The best among the above is likely to be selling in Infosys. This counter is in sideways mode. Bear move on Thursday is likely to initiate a fresh downtrend in this counter.

Cash segment

The composition and ranking of the top-10 list had minor changes. Suzlon made its way to top-10 list pushing out Satyam. SBI, HDFC and Tata Steel moved one step lower in the list.

Except Reliance Capital, ICICI Bank, SAIL and Tata Steel, all other counters in the top-10 list are in uptrend.

All the uptrend counters are likely to be under threat for Thursday’s trading. There are no buying opportunities for Thursday’s trading. Selling opportunities are likely to exist in all the uptrend counters.

The best among the above is likely to be selling in SBI. 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.

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