The Hindu Business Line : Bull domination

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

NIFTY FUTURES

The October contract opened with a bear gap of around 3 points from its previous close. The contract moved within a range of around 129 points. The contract closed with a gain of around 90 points from its previous close.

The long position in Nifty October contract is left to expire. The fresh entry levels are given for November contract. The long entry-level is placed nearer whereas the short entry level is placed quite far away from its last traded price. Bull move on Friday is likely to initiate a fresh uptrend in Nifty Futures November contract.

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 Tata Steel interchanged their positions. IDBI and ICICI Bank interchanged their positions.

Click here for table

All the positions in the top-10 list are neutralised due to the contract expiry. The fresh entry levels are given for November contract. Buying opportunities are likely to exist in all the counters except Reliance Energy and Reliance Capital. Selling opportunities are likely to exist in all the counters except Tata Steel. The best is likely to be selling in BHEL. This counter is in side ways mode. Bear domination on Friday is likely to initiate a fresh downtrend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. ONGC made its way to top-10 list pushing out SAIL. ONGC occupied last position in the list. ICICI Bank, BHEL and SBI moved one step higher in the list. Infosys moved from seventh to ninth position in the list. Tata Steel moved from last to sixth position in the list. The long exit level for SAIL is placed at 241.15.

Except ICICI Bank, Infosys and ONGC all other counters in the top-10 tradable list are in uptrend. Except Tata Steel all other uptrend counters are likely to be under threat for Friday’s trading. Buying opportunities are likely to exist in ICICI Bank, Infosys and ONGC. Selling opportunities are likely to exist in Reliance Energy, Reliance Industries, Reliance Capital, Tata Power, BHEL and SBI. The best is likely to be selling in BHEL. This counter is in uptrend. Bear move on Friday is likely to reverse the 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.