The Hindu Business Line : Bear domination

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

Nifty futures

The July month contract opened with a bear gap of around 30 points from its previous close. The July month contract moved within a range of around 53 points. The July month contract closed with a loss of 12 points from its previous close.

Bear domination during the day reversed the long position in the July month contract. The short exit and long entry levels are quite near to its last traded price. Bull pressure during Thursday is likely to trigger these levels.

Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes.

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Reliance Capital moved from seventh to third position in the list. Except Reliance Capital and Reliance Industries all other counters in the list are in the downtrend. Bull domination on Thursday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in Reliance Industries, SBI, Tata Steel, ACC, IDBI, Hindalco, ICICI Bank and Century Textiles. There are no selling opportunities for Thursday’s trading. The best is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Thursday is likely to reverse the existing trend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had minor changes. Reliance Capital made its way to top-10 list pushing out Hindalco. Reliance Capital occupied ninth position in the list. Reliance Energy and IDBI interchanged their position. Except Infosys, Reliance Energy and Reliance Capital all other counters are in downtrend. In the uptrend counters Infosys is likely to be under threat for Thursday’s trading. On the other hand, bull domination on Thursday is likely to terminate Reliance Industries, SBI, IDBI and Tata Steel in the list. Buying opportunities are likely to exist in Reliance Industries, SBI, IDBI, Reliance Capital and Tata Steel. Infosys is likely to be the lone selling opportunity for Thursday’s trading. The best among the above is likely to be buying in Reliance Industries. This counter is in downtrend. Bull 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.