The Hindu Business Line : Bull domination

Thursday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters changed to bullish. Bear move on Friday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty Futures

The July month contract opened with a bull gap of 16 points from its previous close. It moved within a range of around 52 points before closing with a gain of 63 points.

Bull domination during the day reversed the downtrend in the contract. The long exit and short entry levels are placed quite far away from last traded price.

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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 no changes. All the counters in the list are in uptrend. Except IDBI, Tata Steel and BHEL, all uptrend counters are likely to be under threat for Fr iday’s trading.

Selling opportunities are likely to exist in Reliance Capital, SBI, ACC, Century Textiles, Reliance Industries, ICICI Bank and Bank of India.

The best is likely to be selling in Reliance Capital. This counter is in uptrend. Bear move on Friday is likely to reverse the existing trend in this counter.

Cash Segment

The composition of the top 10 list had no changes. However, the ranking saw minor changes. BHEL moved from ninth to seventh position, while Tata Steel and Satyam moved one step lower.

Except Infosys, Satyam and TCS, all counters in the list are in uptrend. SBI, ACC, Reliance Industries and ICICI Bank are under threat for Friday’s trading.

On the other hand, bull domination on Friday is likely to terminate all the downtrend counters.

Buying opportunities are likely to exist in Infosys, Satyam and TCS.

The selling opportunities are likely to exist in SBI, ACC, Reliance Industries and ICICI Bank.

The best among the above is likely to be selling in SBI. This counter is in uptrend. Bear move on Friday 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.