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K. Premkumar

Wednesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bullish. Bear domination 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 April contract opened with a bear gap of around 8 points from its previous close. The April contract moved within a range of around 99 points and closed with a gain of around 55 points from its previous close.

Bear move during the day reversed the long position in the Nifty April contract. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Thursday’s trading.

The composition and the ranking of the top-10 list had no changes. There are five uptrend and four downtrend counters in the top-10 list.

All the uptrend counters except ICICI Bank are likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate Infosys and NTPC. Buying opportunities are likely to exist in Reliance Industries, Infosys and NTPC.

Selling opportunities are likely to exist in Reliance Capital, Tata Steel, SBI and Hindalco. 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.

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Energy and BHEL interchanged their position. Suzlon and HDFC interchanged their position.

There are four uptrend and three downtrend counters in the top-10 list. The uptrend counter Reliance Capital is likely to be under threat for Thursday’s trading.

On the other hand, bull move on Thursday is likely to terminate SAIL and Infosys. Buying opportunities are likely to exist in Reliance Industries, Reliance Energy, SAIL, Suzlon and Infosys.

A lone selling opportunity is likely to exist in Reliance Capital. 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.

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