The Hindu Business Line : Bears prevail

Bears prevailed 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 its favour. On the other hand, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

Nifty futures: The October month contract opened around its previous close. It moved within a range of around 64 points making an intra-day low of 3510.10. It closed with a loss of around 50 points from its previous close.

The short position in the contract remains intact. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during trading on Thursday.

Stock futures: The composition of the top-10 tradable counters had no changes. However, the ranking had a total revamp. Tata Steel moved up and occupied first position. Tata Motors and Reliance Industries moved up in the ranking while ACC, Bajaj Auto and Jet Airways moved down.

The top-3 tradable counters in this segment were Reliance Industries, Tata Motors and Tata Steel. There are seven downtrend and three uptrend counters in the top-10 tradable list. All the downtrend counters except Satyam are likely to be under threat for Thursday's trading. On the other hand, the uptrend counters are likely to be terminated. There are ample buying opportunities and three selling opportunities for Thursday's trading.

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The best is likely to be buying in Jet Airways. This counter is in downtrend. Bull move on Thursday is likely to trigger the uptrend in this counter.

Cash segment: The composition and ranking of the top-10 tradable list had minor changes. HDFC, ICICI Bank and SBI gave way to Reliance Capital, Satyam and Tata Motors Reliance Industries and Infosys moved down in the ranking while Maruti and Hindustan Lever moved up in the ranking.

The exit levels for HDFC, ICICI and SBIN are placed at 1488.05, 698.05 and 1005.95 respectively.

There are seven downtrend counters and three uptrend counters in the top-10 tradable list. All the uptrend counters are likely to be terminated.

On the other hand, five downtrend counters 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 selling in i-flex Solutions. This counter is in uptrend. Bear move on Thursday is likely to reverse the existing trend 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.