The Hindu Business Line : Bear domination

Thursday’s trading activity witnessed bear domination. However the sentiment reading of the tradable counters remains 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 strengthened with additional counters.

Nifty Futures

The August month contract opened with a bull gap of around 49 points from its previous close. However, the bulls were not able to sustain their initial movement and gave way to the bears. The August month contract moved within a range of around 151 points. The August month contract closed with a loss of 84 point from its previous close.

The long position in the August month Nifty futures contract is undisturbed. The long exit and short entry levels are placed very nearer to its last traded price. These levels are likely to be triggered during Friday’s trading activity.

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Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. SBI and Reliance Capital interchanged their positions in the list. BHEL and Hindalco interchanged their positions in the list.

Reliance Industries, IDBI, ICICI Bank and BHEL are in uptrend in the list. Reliance Capital, SBI, Reliance Energy, ACC and Hindalco are in downtrend. All the uptrend counters are likely to be under threat for Friday& #8217;s trading. There are no buying opportunities for Friday ’s trading. Selling opportunities are likely to exist in Reliance Industries, Tata Steel, IDBI, ICICI Bank 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 trend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had minor changes. ACC made its way to top-10 list pushing out Tata Steel. ACC occupied last position in the list. SAIL and Infosys interchanged their positions in the list. ITC and IDBI interchanged their positions in the list. The short exit level for Hindalco is placed at 166.25. The long exit level for ACC is placed at 995.55. The long exit level for Tata Steel is placed at 645.95.

Except Reliance Energy, SBI, Reliance Capital and ITC all other counters in the list are in uptrend. All uptrend counters are likely to be under threat for Friday’s trading. There are no buying opportunities for Friday’s trading. Selling opportunities are likely to exist in Reliance Industries, Infosys, SAIL, BHEL, IDBI and ACC. The best among the above is likely to be selling in Infosys. 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.