The Hindu Business Line : Bull domination

Bulls dominated Thursday's trading activity. The sentiment reading of the tradable counters turned bullish. Bear domination on Friday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures

The June month contract opened with a bull gap of around 89 points. The June month contract moved within a range of around 157 points making an intra-day high of 2803. It closed with a gain of around 174 points from its previous close.

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The June month contract entered a fresh long position in the morning session. Both the long exit and short entry levels are placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Friday's trading.

Stock Futures

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes.

Infosys moved up to second position pushing down Tisco and Hindalco to third and fourth positions respectively. ACC and MTNL interchanged their positions.

The top-3 tradable counters in this segment were Reliance, Tata Steel and Relcapital.

All the counters in the top-10 tradable list are likely to be under threat for Friday's trading. There are no buying opportunities for Friday's trading. The nearest selling opportunities are likely to exist in Reliance, Ranbaxy and ACC.

Among the above the best is likely to be selling in Reliance. Bear move on Friday is likely to trigger the downtrend in this counter.

Cash Segment

The composition of the top-10 tradable counters had no changes. However, the ranking of the list had minor changes.

Infosys moved up to fifth position and ONGC moved down to sixth position. SAIL and Tata Motors interchanged their positions.

Bear domination on Friday is likely to terminate all the uptrend counters in the list. On the other hand, ONGC is likely to be terminated. There are two opportunities on either side of the trading.

The best is likely to be buying in Maruti. This counter is in the side ways mode. Bull domination on Friday is likely to initiate a fresh uptrend in Maruti.

(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.