The Hindu Business Line : Bulls stranded

WEDNESDAY'S trading activity witnessed bears putting a stop to the two-day bull-run. However, sentiment reading of the tradable counters remains mildly bullish.

Bear domination on Thursday is likely to change the sentiment reading bearish. On the other hand, the prevailing sentiment reading is likely to be strengthened.

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Nifty futures recommendation: The October month contract opened around Tuesday's close. Bears were successful in taming the bulls. The repeated attempts of the bulls to gain hold over the day's trading was not successful. The October month contract moved with in a range of 29 points. It closed lower with a loss of around 16 points from yesterday's close.

The exit level for the uptrend in the October month contract moved to a profitable zone. However, exit and short levels are placed quite near to the last traded price. Bear domination on Thursday is likely to reverse the prevailing trend in October contract.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list had no changes. The top three traded counters in this segment were Tata Steel, Reliance and Satyam Computers.

Bear domination on Thursday is likely to terminate all the uptrend counters in the list. There are ample selling opportunities for Thursday's trading. Buying opportunities are likely to exist in four counters. The best for Thursday's trading is likely to be selling in Tata Steel. This counter is in sideways mode. Bear move on Thursday is likely to initiate fresh downtrend in Tata Steel.

Cash segment: There were no entries or exits into the top 10 tradable list. The ranking of the list had a minor change. Satyam Computer moved up to seventh rank while ITC moved down to ninth rank.

For Thursday's trading, all the uptrend counters are likely to be under threat. However, the downtrend in Sterling Biotech is likely to be undisturbed. Buying opportunities are likely to exist in three counters.

Six opportunities are likely to exist on the sell side for Thursday's trading. The best bet for Thursday's trading is likely to be selling in Reliance Industries. Bear pressure on Thursday is likely to trigger the level 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.

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