The Hindu Business Line : Bears prevail

Bears prevailed over Wednesday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull move on Thursday is likely to change the sentiment reading in their favour.

Nifty futures

The March contract opened with a bear gap of around 32 points from its previous close. The March contract moved within a range of around 57 points making an intraday low of 3757.10. The March contract closed with a loss of around 73 points from its previous close.

The short position in the March contract remains intact. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Thursday's trading. Due to expiry, the position in the March contract has to be closed during Thursday's trading.

Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. ICICI and TCS moved up in the ranking, while Tata Steel and Satyam moved down. The top-three tradable counters in this segment were Tata Steel, SBI and Reliance Industries.

Due to expiry all open positions in the March contract has to be closed during Thursday's trading.

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All the counters in the top-10 tradable list were in downtrend. Reliance Industries, ACC, ICICI, Tata Steel and Satyam are likely to be under threat for Thursday's trading. There are five buying opportunities for Thursday's trading. The best among them is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Thursday is likely to reverse the prevailing trend in this counter.

Cash segment

The composition and ranking of the top-10 tradable list had minor changes. BHEL gave way to Tata Motors. Tata Motors occupied ninth position in the ranking. Satyam, TCS, and SBI moved up in the ranking, while ACC, SAIL, ICICI, ITC and Tata Steel moved down.

All the counters in the top-10 tradable list are in downtrend. Except Satyam, TCS, SBI and Tata Motors, other counters are likely to be under threat for Thursday's trading. There are six buying opportunities for Thursday's trading. The best among them is likely to be buying in ITC. This counter is in downtrend. Bull move on Thursday is likely to reverse the prevailing 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.