The Hindu Business Line : Bear domination

Bear Dominated over Wednesday's trading activity. The sentiment reading of the tradable counters changed to bearish. Bull move on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

Nifty Futures

The August month contract opened with a bear gap of around 3 points. The August contract moved with in a range of around 40 points making an intraday low of 3322.85. It closed with a loss of around 27 points from its previous close.

The long position in the August contract exited with a profit of 190 points and entered short. Both the short exit and long 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 Thursday.

Stock Futures

The composition of the top-10 tradable list had no changes.

However, the ranking of the list had minor changes. Satyam and Infosys interchanged their positions. Bajaj Auto and Tata Motors interchanged their positions.

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

All the uptrend and down trend counters in the top-10 tradable list are likely to be under threat for Thursday's trading. There are ample buying opportunities and two selling opportunities for Thursday's trading.

The best is likely to be buying in Satyam. This counter is in down trend. Bull move on Thursday is likely to reverse the existing trend in this counter.

Cash Segment

The composition and the ranking of the top-10 tradable list had no changes. Except Maruti, which is in side ways mode, all other counters in the list are likely to be under threat for Thursday's trading.

There are ample opportunities on the buy side and three opportunities on the sell side for Thursday's trading.

The best is likely to be buying in Reliance. This counter is in down trend. Bull move on Thursday is likely to trigger the uptrend 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.