The Hindu Business Line : Bulls take control

Bulls prevailed during Thursday’s trading activity. 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.

Nifty futures

The August month contract opened with a bull gap of around 44 points from its previous close. The August month contract moved within a range of around 46 points. The August month contract closed with a gain of around 47 points from its previous close.

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Bull move during the day initiated long position in the August month contract. Today being contract expiration date, long position expired at the end of the day. The new entry levels are given for September month Nifty futures contract. The fresh entry levels are placed quite 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. Infosys made its way to top-10 list pushing out ACC. Infosys occupied last position in the list. Reliance Capital a nd SBI interchanged their positions.

All the counters in the top-10 tradable list are terminated due to the contract expiration. All fresh entry levels are given in the September month contract. Buying opportunities are likely to exist in Reliance Industries, IDBI, ICICI B ank, BHEL and Infosys. Selling opportunities are likely to exist in all the counters except Tata Steel. The best among the above is likely to be buying in Reliance Industries. This counter is in sideways mode. Bull move on Friday is likely to initiate a fresh uptrend 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. Tata Steel and SBI interchanged their positions. Infosys and Reliance Capital interchanged their positions. Reliance Energy moved from seventh to ninth position in the list. IDBI and BHEL moved one step higher in the list.

All the counters in the list are in uptrend. Except Tata Steel all the uptrend counters are under threat for Friday’s trading. There are no buying opportunities for Friday’s trading. Selling opportunities are likely to exist in all the counters except Tata Steel. The best among the above is likely to be selling in IDBI. This counter is in uptrend. Bear move on Friday is likely to reverse the prevailing 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.