The Hindu Business Line : Bear domination

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 May contract opened with a bull gap of around six points from its previous close. The May contract moved within a range of around 69 points and closed with a loss of around 35 points from its previous close.

The long position in the Nifty May 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. Ranbaxy made its way to top-10 list pushing out TCS. The ranking had no changes. The long exit level for TCS is placed at 909.95.

Except ICICI Bank and Ranbaxy, all other counters in the top-10 list are in uptrend. Except Reliance Energy, 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 Ranbaxy. A lone buying opportunity is likely to exist in Ranbaxy. Selling opportunities are likely to exist in Reliance Industries, Reliance Capital, Infosys, BHEL, Tata Steel, SBI and Satyam. The best is likely to be selling in Reliance Industries.

This counter is in uptrend. Bear move on Friday is likely to initiate a fresh uptrend in this counter.

Cash segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes.

BHEL and Reliance Industries interchanged their position. Reliance Capital moved from third to fifth position in the list. Infosys and ICICI Bank moved one step higher in the list.

Except Reliance Industries and ICICI Bank all other counters in the top-10 list are in uptrend. The uptrend counters BHEL, Infosys, Reliance Capital and Suzlon are likely to be under threat for Friday’s trading. A lone buying opportunity is likely to exist in Reliance Industries.

Selling opportunities are likely to exist in BHEL, Reliance Industries, Infosys, Reliance Capital and Suzlon. The best is likely to be selling in Reliance Industries. This counter is in sideways 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.