The Hindu Business Line : Bear domination

Wednesday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters turned to bearish. Bull move on Thursday is likely to change the sentiment reading in their favour.

On the contrary the current sentiment reading is likely to be further strengthened with additional counters.

Nifty futures

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The October month contract opened with a bear gap of around 283 points from its previous close. The October month contract moved within a range of around 419 points. The October month contract closed with a loss of around 120 points from its previous close.

The long position in the October Month contract exited and initiated a fresh downtrend. The short exit and long entry levels are placed quite far away from its last traded price.

These levels are unlikely to be triggered during Thursday’s trading.

Stock futures

The composition of the top-10 list had no changes. However the ranking of the top-10 list had minor changes. Tata Power and SBI interchanged their positions in the list.

Except Reliance Industries all other counters in the top-10 list are in down trend. Bull domination on Thursday is likely to terminate Tata Steel, NTPC, IDBI and ICICI Bank. Buying opportunities are likely to exist in Reliance Industries, Tata Steel, NTPC, IDBI and ICICI Bank. There are no selling opportunities for Thursday’s trading. The best among the above is likely to be buying in Reliance Industries.

This counter is in sideways mode. Bull domination on Thursday is likely to initiate a fresh uptrend in this counter.

Cash segment

The composition of the top-10 list had no changes. However the ranking of the top-10 list had minor changes. SAIL and Infosys interchanged their positions. The short exit level of IDBI is placed at 138.65.

Except Reliance Industries all other counters in the top-10 tradable list are in downtrend. Bull domination on Thursday is likely to terminate Infosys, Tata Steel, SBI and ONGC. Buying opportunities are likely to exist in Reliance Industries, Infosys, Tata Steel, SBI and ONGC.

There are no selling opportunities for Thursday’s trading. The best is likely to be buying in Reliance Industries.

This counter is in sideways mode. Bull move on Thursday is likely to initiate a fresh uptrend 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.