The Hindu Business Line : Bears prevail

Bears managed to gain from the day's trading. However, the sentiment reading of the tradable counters stands bullish. Further bear pressure on Friday is likely to change the sentiment reading to bearish.

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Nifty futures recommendation: The September month contract opened with a bear gap of four points and steadily lost during the day's trading. Bulls were unable to make any impact during the day. The September contract moved within a band of 24 points. It closed lower with a strong bearish note.

The long position in the September contract remains intact. In the normal course of trading on Friday, the long position is likely to continue. However, bear domination has the potential to terminate the uptrend. Bearish trigger level has also been moved closer.

Stock futures recommendation: The composition of the top-10 tradable list underwent a change. Ranbaxy gained entry with the exit of ACC. The top three traded counters in this segment were Maruti, Tata Steel and Reliance. The exit level for the long position in ACC is placed at Rs 279.45.

Except for the downtrend in Satyam, all the other counters in the list are likely to be under threat. Bears are likely to have opportunity in five counters. Buying opportunities are likely to exist in two counters. Selling in Reliance is likely to be the best for Friday's trading. This counter is in the uptrend. The exit and sell levels are placed quite closer to its current level. Bear domination on Friday has the potential to trigger these levels.

Cash segment: The composition of the most active counters list remains unchanged. The ranking of the list too remains the same with no major changes. Thursday's market action had no impact on the recommended counter - Reliance.

Bear pressure on Friday is likely to terminate most of the uptrend counters in the list. On the other hand, the lone downtrend counter - Satyam - is likely to be under threat. Buying opportunities are unlikely to exist for Friday's trading.

Selling opportunities are likely to exist in eight counters. The best bet is likely to be the selling in Wipro. Bearish trigger level for this counter is placed within a rupee from its last traded price. Bear pressure on Friday is likely to trigger the downtrend in Wipro.

(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.