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K. Premkumar

BULLS were in total command of Wednesday's trading activity. The sentiment reading of the tradable counters stands bullish. Bear domination on Thursday had the potential to reduce the bull count by a considerable margin thereby resulting a change in the sentiment reading. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The May month contract opened around the previous close and made steady gains during the day's trading. Bulls capitalised the day's entire move leaving the bears with no opportunity to recover. The May contract closed higher with a gain of 29 points with respect to Tuesday's close.

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Bulls were successful in reversing the downtrend in the May contract. The short trade exited with a loss of around 20 points. The exit for the initiated long position and the bearish trigger level is placed slightly away from the current level. In the normal course of trading on Thursday, these levels are unlikely to be triggered.

Stock futures recommendation: The composition of the top-10 active counters list remains unchanged. The ranking of the list had few changes. Tata Steel moved to the top slot followed by State Bank and Reliance.

Except for the downtrend in Polaris, all the other counters in the list are likely to be under threat. Bulls are likely to have opportunity in two counters. Selling opportunities are likely to exist in four counters. Buying in Union Bank is likely to be the best bet for Thursday's trading. Buy level for this counter is placed quite closer to the last traded price. Bull move on Thursday is likely to initiate a fresh uptrend in Union Bank.

Cash segment: There were no new entries or exits to the top-10 tradable counters list. The ranking of the list had some changes. Infosys moved to the second position and Tata Steel to the fourth position.

For Thursday, most of the counters in the list are likely to be under threat. Bulls are likely to have opportunity in six counters. Selling opportunities are likely to exist in four counters. Buying in ONGC is likely to be the best for Thursday's trading. This counter is in the sideways mode. Bullish trigger level for this counter is placed within two rupees from the closing price. Bull pressure on Thursday is likely to trigger the uptrend in ONGC.

(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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