The Hindu Business Line : Bear domination

Bull domination on Thursday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

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The February contract opened with a bull gap of around 75 points from its previous close.

However, bulls could not sustain their initial move and gave way to bears. The February contract moved within a range of around 214 points and closed with a loss of around 33 points from its previous close.

The uptrend in the February Nifty contract is intact. The long exit and short entry levels are placed quite nearer to its last traded price.

Bear move during Thursday is likely to reverse the existing trend in February Nifty contract.

STOCK FUTURES

The composition and the ranking of the top-10 list had no changes. Reliance Energy, NTPC, ICICI Bank, SBI and Hindalco are in downtrend in the list.

Reliance Industries, Tata Steel, Infosys and ONGC are in uptrend in the list. All the uptrend counters are likely to be under threat for Thursday’s trading.

There are no buying opportunities for Thursday’s trading. Selling opportunities are likely to exist in all uptrend and sideways counters. The best among the above is likely to be selling in Reliance Capital. This counter is in sideways mode. Bear move on Thursday 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. SBI made its way to top-10 list pushing out Suzlon.

Tata Steel and Satyam moved one step higher in the list. The long exit level for Suzlon is placed at 301.05.

There are five uptrend and five downtrend counters in the top-10 list. Except SAIL all other uptrend counters are likely to be under threat for Thursday’s trading.

There are no buying opportunities for Thursday’s trading. Selling opportunities are likely to exist in Reliance Industries, BHEL, Infosys and Tata Steel.

The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Thursday 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.

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