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K. Premkumar

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 current sentiment reading is likely to be strengthened with additional counters.

The January contract opened with a bear gap of around 126 points from its previous close.

The January contract moved within a range of around 141 points and closed with a loss of around 114 points from its previous close.

The short position in the January contract is intact. 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 activity.

The composition and the ranking of the top-10 list had no changes. Except Tata Steel all other counters in the top-10 list are in downtrend. The uptrend counter Tata Steel is likely to be under threat for Thursday’s trading. There are no buying opportunities for Thursday’s trading. A lone selling opportunity is likely to exist in Tata Steel.

This counter is in uptrend. Bear move on Thursday is likely to reverse the existing trend in this counter.

The composition and the ranking of the top-10 tradable list had no changes. Except SAIL, BHEL and Tata Power all other counters in the top-10 list are in downtrend.

The uptrend counters SAIL and BHEL are likely to be under threat for Thursday’s trading.

On the other hand, bull move on Thursday is likely to terminate SBI. A lone buying opportunity exits in SBI. Selling opportunities are likely to exist in SAIL and BHEL.

The best among the above is likely to be selling in BHEL.

This counter is in uptrend. Bear move on Thursday 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.

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