The Hindu Business Line : Bear domination

Bears dominated over Wednesday's trading activity. The sentiment reading of the tradable counters changed to sideways. Bear move on Thursday has the potential to change the sentiment reading in their favour. On the contrary, bull move on Thursday has the potential to change the sentiment reading in their favour.

Nifty Futures: The May month contract opened with a bear gap of around 3 points from its previous close. It moved within a range of around 54 points making an intra-day high of 4282.40 and ended with a loss of around 39 points from its previous close.

The long position in the May month contract is exited with profit, and a fresh downtrend initiated. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Thursday's trading activity.

Click here for table

Stock Futures: The composition of the top-10 tradable list has no changes. However, the ranking in the top-10 list had minor changes. Tata Steel moved from fourth to second position in the list. The top-3 tradable counters in this segment were Tata Steel, Reliance Capital and Reliance Energy.

Except Bajaj Auto, IDBI and ONGC, all other counters in the top-10 tradable list are in uptrend. In the uptrend counters, ICICI Bank, Century Textiles and Bank of India are under threat for Thursday. There are three selling and one buying opportunities likely to exist in the list. The best among the above is likely to be selling in Century Textiles. This counter is in uptrend. Bear move on Thursday is likely to reverse the trend in this counter.

Cash Segment: The composition of the top-10 tradable list has no changes. However, the ranking in the top-10 list had minor changes. Tata Motors and TCS interchanged their position.

Except Reliance, Tata Steel and SBI, all other counters in the top-10 tradable list are in downtrend. There are three buying opportunities likely to exist in the list. The best candidate is likely to be buying in TCS. This counter is in downtrend. Bull move on Thursday is likely to reverse the 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.