Back Indecisive move
K. Premkumar
THURSDAY'S trading activity was quite indecisive. Neither the bulls nor the bears could gain much from the day's trading.
The sentiment reading of the tradable counters stands mildly in favour of the bulls. Bear domination on Friday is likely to change the sentiment reading in their favour.
On the contrary, the prevailing bullish sentiment is likely to continue with added strength.
Nifty Futures Recommendation: The March contract opened two points above its previous close and went further by another 14 points. Thereafter, bears made a comeback and wiped out most of their losses.
The March contract moved within a band of 15 points for the second successive day. It closed with a gain of five points over Wednesday's close.
Initial bull move led to the initiation of the uptrend in the March contract. However, the initiated long position is likely to be under threat for Friday. Bearish trigger level for the March contract has also been moved closer. Bear domination on Friday has the potential to reverse the uptrend in the March contract.
Stock Futures Recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of list had few changes. Reliance moved to the fourth position followed by Tata Motors and ACC.
Most of the counters in the list are in the sideways mode. Bear move on Friday is likely to terminate the uptrend in CNX IT and Infosys. On the other hand, the lone downtrend counter - Tata Motors is likely to be under threat.
Bulls are likely to have opportunity in seven counters. Selling opportunities are likely to exist in six counters. The best bet for Friday's trading is likely to be the buying in Maruti. Bullish trigger level for this counter is placed very close to its current level. Bull pressure on Friday is likely to trigger the uptrend in Maruti.
Cash Segment: There were no new entries to the top-10 active counters list. The ranking of the list had some changes. Tata Tele moved to the sixth position followed by Tata Steel and Bharti Tele. The downtrend in ING Vysya is likely to be terminated at 189.85.
For Friday, most of the counters in the list are likely to be under threat. Buying opportunities are likely to exist in four counters. Selling opportunities are likely to exist in six counters.
For Friday, the best is likely to be the buying in Infosys. This counter is in the sideways mode. Buy level for this counter is placed quite closer to the last traded price. Bull move on Friday has the potential to initiate the uptrend in Infosys.
(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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