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K.Premkumar

Bears prevailed over Wednesday’s trading activity. However, initial bull move during the day changed the sentiment reading to bullish.

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.

The April contract opened with a bull gap of around 158 points from its previous close. However, bulls were not able to sustain its initial momentum and gave way to bears. The April contract moved within a range of around 224 points and closed with a loss of around 32 points from its previous close.

Initial bull move during the day reversed the short position in the Nifty April contract. The long exit and short entry levels are placed nearer to its last traded price. These levels are likely to be triggered during Thursday’s trading.

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Hindalco and NTPC interchanged their position.

Except Reliance Energy, Tata Steel and BHEL 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 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.

The composition and the ranking of the top-10 list had minor changes. Tata Steel made its way to top-10 list pushing out SBI. HDFC and Suzlon interchanged their position.

Except Reliance Energy, SAIL, BHEL 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 except Suzlon.

There are no buying opportunities for Thursday’s trading. Selling opportunities are likely to exist in Reliance Capital, Reliance Industries, ICICI Bank, HDFC and Infosys.

The best is likely to be selling in Reliance Industries. 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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