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K. Premkumar

Thursday’s trading activity witnessed volatile movement. Bull domination 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.

The April month contract opened with a bull gap of around 21 points from its previous close. The April month contract moved within a range of around 105 points. The April month contract closed with a gain of around 27 points from its previous close.

The long position in the Nifty April month contract is intact. The long exit and short entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Friday’s trading.

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. BHEL moved from last to eighth position in the list. NTPC and Infosys moved one step lower in the list.

Except Reliance Industries and Infosys, all other counters in the top-10 list are in downtrend.

The uptrend counter Reliance Industries is likely to be under threat for Friday’s trading. On the other hand, bull move on Friday is likely to terminate all the downtrend counters except Reliance Energy and BHEL. Buying opportunities are likely to exist in Reliance Capital, ICICI Bank, Tata Steel, SBI, Hindalco and NTPC. A lone selling opportunity is likely to exist in Reliance Industries. The best is likely to be buying in Tata Steel. This counter is in downtrend. Bull move on Friday is likely to reverse the existing trend in this counter.

The composition of the top-10 list had no changes. However the ranking of the top-10 list had minor changes. BHEL moved from eighth to fifth position in the list. SAIL, HDFC and Suzlon moved one step lower in the list.

Except Reliance Industries, Suzlon and Infosys, all other counters in the top-10 list are in downtrend. The uptrend counter Reliance Industries is likely to be under threat for Friday’s trading.

On the other hand, bull move on Friday is likely to terminate all the downtrend counters except Reliance Energy and BHEL. Buying opportunities are likely to exist in Reliance Capital, ICICI Bank, SAIL, HDFC and Tata Steel.

A lone selling opportunity is likely to exist in Reliance Industries. The best is likely to be buying in Tata Steel.

This counter is in downtrend. Bull move on Friday 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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