The Hindu Business Line : Sideways movement

Bear domination on Friday is likely to change the sentiment reading in their favour. On the contrary, bull move on Friday is likely to change the sentiment reading in their favour.

NIFTY FUTURES

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The April contract opened with a bull gap of around 34 points from its previous close. The April contract moved within a range of around 74 points and closed with a loss of around 31 points from its previous close.

The long position in the Nifty April contract is terminated due to contract expiry. The new entry levels are placed based on May contract.

The short entry level is placed quite nearer to its last traded price. Bear move during Friday is likely to initiate fresh downtrend in Nifty May contract.

STOCK FUTURES

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

BHEL and Reliance Energy interchanged their position.

All the counters in the top-10 list are terminated due to contract expiry. The new entry levels are placed based on May month contract.

Buying opportunities are likely to exist in Reliance Industries, Infosys, BHEL, ICICI Bank, SBI and TCS. There are ample selling opportunities for Friday’s trading. The best is likely to be selling in Tata Steel.

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

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. Satyam occupied the top-10 list pushing out HDFC. Reliance Energy moved from sixth to eighth position in the list.

Suzlon, SAIL and Tata Steel moved one step higher in the list.

Except ICICI Bank, Suzlon and Reliance Energy all other counters are in uptrend in the top-10 list.

Except Reliance Capital and Infosys all other uptrend counters are likely to be under threat for Friday’s trading. On the other hand, bull move on Friday is likely to terminate Suzlon.

Buying opportunities are likely to exist in ICICI Bank and Suzlon. Selling opportunities are likely to exist in Reliance Industries, BHEL, ICICI Bank, SAIL, Tata Steel and Satyam.

The best is likely to be selling in Tata Steel. 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.