Back Bulls prevail
K. Premkumar
BULLS continued to dominate during the Thursday's trading. The sentiment reading of the tradable counters continues to remain bullish. Bear domination on Friday is likely to change the sentiment reading in their favour. On the other hand, the prevailing bullish sentiment is likely to be further strengthened.
Nifty futures recommendation: The May month contract opened with a bull gap of around 10 points and further went up by another 10 points. Bears were unable to make any impact during the day's trading. The May contract closed higher with a gain of around 20 points with respect to Wednesday's close.
The long position in the May contract is locked up with a decent profit of 20 points. Bear domination on Friday is likely to terminate the uptrend in the May contract. However, bearish trigger level is placed quite far away. It is unlikely to be triggered during Friday's trading.
Stock futures recommendation: The composition and ranking of the top-10 tradable list had minor changes. Bank of India gained entry in place of Polaris.
Infosys moved to fifth position while Tata Motors and PNB interchanged their positions. The exit level for Polaris is placed at 100.55.
None of the counters in the list are in down trend. Bear domination on Friday is likely to be a threat to all the counters in the list.
Selling opportunities are likely to exist in six counters. Best among the above is likely to be selling in Reliance Industries. Sell level for this counter is placed just two rupees away from the last traded price.
Bear move on Friday is likely to reverse the prevailing uptrend in Reliance Industries.
Cash segment: The composition and ranking of the active counters list remained unchanged. All the counters in the list are likely to be under threat for Friday's trading. Bears are likely to have opportunities in almost seven counters in the tradable list.
A lone buying opportunity is likely to exist in Tata Motors. Selling in Reliance Industries is likely to be the best for Friday's trading. Bear pressure on Friday is likely to trigger the uptrend in Reliance Industries.
(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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