Back Bear domination
K. Premkumar
BEARS extended further pressure over Thursday's trading activity.
Bull domination on Friday has the potential to terminate most of the downtrend counters in the list thereby resulting change in the sentiment reading. Otherwise, the prevailing bearish sentiment is likely to be further strengthened.
Nifty futures recommendation: Initially, the July month contract gained five points but thereafter made steady losses during the day's trading. Bears stronghold left the bulls with no opportunity to recover. The July contract moved within a band of 33 points registering an intra-day low of 2,166.60. It closed with a loss of 22 points with respect to previous close.
Bears were successful in initiating the downtrend in the July contract. In the normal course of trading on Friday, the initiated short position is unlikely to be disturbed. Bullish trigger level for the July contract is placed quite far away.
Stock futures recommendation: The composition as well as the ranking of the top-10 tradable counters remain intact. Reliance, Infosys and State Bank were the top three traded counters in this segment.
For Friday, most of the counters in the list are likely to be under threat. Bears are likely to have opportunity in five counters. Buying opportunities are likely in four counters.
Selling in State Bank is likely to be the best for Friday's trading. Sell level for this counter is placed quite closer to the current level. Bear move on Friday is likely to trigger the downtrend in State Bank.
Cash segment: There were no new entries or exits to the top-10 tradable counters. The ranking of the list underwent a change. Reliance Energy and Satyam interchanged their positions.
Except for the downtrend in Infosys, all the other counters in the list are likely to be under threat. Selling opportunities are likelyin IPCL, Reliance India and State Bank. Buying opportunities are likely in ONGC, Reliance and Reliance Energy.
The best among the above is likely to be the selling in State Bank. This counter is in the sideways mode. Bearish trigger level for this counter is placed within a rupee from the closing price. Bear pressure on Friday is likely to initiate the downtrend in State Bank.
(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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