The Hindu Business Line : Bull domination

Bulls dominate over Thursday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear move on Friday has the potential to change the sentiment reading to bearish. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The June month contract opened with a bull gap of around 31 points from its previous close. The contract moved within a range of around 52 points, making an intraday high of 4166.85. It closed with a gain of around 66 points from its previous close.

The short position in the June contract is exited with huge profit and initiating a fresh uptrend. The long exit and short entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Friday's trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. Tata Motors made its way to the top-10 list, pushing out ICICI Bank. Bajaj Auto moved down from fifty to ninth position and pushed IDBI, Century Textiles, Satyam and Hindalco one step up in the list.

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Except Tata Motors, all other counters in the top-10 tradable list are in uptrend. Except Reliance Capital all the uptrend counters in the list are under threat for Friday's trading. A lone buying opportunity is likely to exist in Tata Motors. Selling opportunities are likely to exist in Tisco, Reliance Industries, SBI, IDBI, Century Textiles, Satyam, Hindalco and Bajaj Auto. The best among the above is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Friday has the potential to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Bajaj Auto moved from second to sixth position. Infosys moved from fifty to third position and pushed Tata steel one step up in the list.

In the uptrend counters, Reliance Industries, Satyam, IDBI and BHEL are under threat for Friday's trading. Buying opportunities exist in Tata Steel, SBI and Bajaj Auto. Selling opportunities are likely to exist in Reliance Industries, Satyam, Tata Motors, IDBI and BHEL. The best is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Friday is likely to reverse the existing position 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.