The Hindu Business Line : Range-bound movement

WEDNESDAY'S trading activity witnessed a narrow movement. However, bulls managed to gain marginally from the day's trading. The sentiment reading of the tradable counters stands mildly bullish. A bear move on Thursday is likely to change the sentiment.On the other hand, the prevailing bullish sentiment reading is likely to be further strengthened.

Nifty futures recommendation During the initial hours of Wednesday's trading, the June contract gained around 13 points. Later on, bears took charge of the day's proceedings and wiped out their early losses. The June contract moved within a band of 21 points, registering an intra-day low of 2055.60.

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The uptrend in the June contract remains intact. The exit level for the long position is now placed at a break even level. Bear domination on Thursday has the potential to terminate the uptrend in the contract. The bearish trigger level for the contract is still placed far away.

Stock futures recommendation There were no new entries or exits to the top-10 active counters list. The ranking of the list had a total revamp. Reliance, Tata Steel and Satyam were the top three traded counters in this segment.

Bear pressure on Thursday is likely to terminate most of the uptrend counters in the list. On the contrary, the lone downtrend counter — State Bank — is likely to be under threat. Buying opportunities are likely to exist in two counters, while selling opportunities are likely to exist in seven. For Thursday, the best bet is likely to be buying in Arvind Mills. The bullish trigger level for this counter is placed quite close to the current level. A bull move on Thursday is likely to trigger the uptrend in Arvind Mills.

Cash segment The top-10 active counters list in this segment underwent a change. Ranbaxy gained entry with the exit of Oriental Bank. The ranking of the list had a few changes. SAIL moved to the fifth position, followed by Maruti and Tata Steel.

Most of the counters in the list are in the sideways mode. Except for the downtrend in SAIL, all the other counters in the list are likely to be under threat. Bulls are likely to have an opportunity in seven counters. Selling opportunities are likely to exist in four counters. For Thursday, the best bet is likely to be buying in ONGC. The buy level for this counter is placed within Rs 2 from the last traded price. Bull pressure on Thursday is likely to initiate a fresh 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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