The Hindu Business Line : Bulls surge ahead

THE sentiment reading of the tradable counters turned bullish. Bear domination on Thursday is likely to turn the sentiment reading in its favour. Otherwise, it is likely to continue with the added strength.

Nifty futures recommendation: Bulls extended their bull run on Wednesday. Bears were unable to put stop to bull run on Wednesday. The May month contract opened with a bull gap of around six points. The May contract moved within a band of 20 points. It closed with a gain of 22 points from the previous close.

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The downtrend in May contract remains intact. Both the exit and bullish levels remained unchanged. If bull domination persists on Thursday both the levels are likely to be triggered.

Stock futures recommendation: The composition and the ranking of the top-10 tradable list remained unchanged.

The top three traded counters in the list are Tata steel, Reliance and Tata Motors. Trading activity in L&T witnessed 3969 trades on Wednesday.

Bear domination on Thursday is likely to terminate all the uptrend counters in the tradable list. Reliance is likely to be under threat in case of further bull domination on Thursday. Bulls are likely to have a lone buying opportunity in Maruti. Selling opportunities are likely to exist in almost six counters in the tradable list.

The best among the above is likely to be the selling in Maruti. This counter is in sideways. Bear pressure on Thursday is likely to initiate fresh downtrend in Maruti.

Cash segment: The composition of the top-10 tradable list had few changes. Bharati Tele and Union Bank gained entry in place of GAIL & SAIL.

Wednesday's market action resulted in triggering the uptrend in the recommended counter — State Bank.

Bull pressure on Thursday is likely to be a threat for the downtrend in Reliance Industries. Bear domination on Thursday is likely to terminate all the uptrend counters in the tradable list. Buying opportunities are likely to exist in Maruti and Reliance Industries. Selling opportunities are likely to exist in six counters in the tradable list.

The best among them is likely to be selling in Infosys. Bear domination on Thursday is likely to trigger the 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 Chennai-based technical analyst and fund management consultant.