Back Restricted movement
K. Premkumar
FOR the second successive trading day, the market witnessed narrow movement. The day's action had very little impact on the tradable counters. The sentiment reading of the tradable counters remains bullish. Bear pressure on Thursday is likely to reduce the bull count by a considerable margin thereby resulting in a change in the sentiment reading.
Nifty Futures Recommendation: The near month July contract opened with a bull gap of five points and went further by another six points. Thereafter, bears took charge of the day's proceedings and wiped out their losses. The July contract moved within a close band of 14 points. It closed just a point above the Tuesday's close.
The long position in the July contract remains intact. The exit level is now moved closer to the current level. Bear pressure on Thursday is likely to terminate the uptrend in the July contract.
Stock Futures Recommendation: The composition of the top-10 active counters list underwent a change. REL gained entry with the exit of Polaris. The exit level for the uptrend in Polaris is placed at 127.95.
Most of the counters in the list are in the uptrend. Bear pressure on Thursday could be a threat to most of the prevailing uptrend counters in the list. Selling opportunities are likely to exist in eight counters. Buying opportunities are likely to exist in two counters. Selling in ONGC is likely to be the best bet for Thursday's trading. Bear move on Thursday has the potential to initiate a fresh downtrend in ONGC.
Cash Segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list underwent a change. VSNL moved to the top slot followed by Reliance.
Bear domination on Thursday is likely to terminate most of the uptrend counters in the list. On the other hand, the lone downtrend counter-IDBI is likely to be under threat. Selling opportunities are likely to exist in five counters. Buying opportunities are likely to exist in three counters. For Thursday, the best bet is likely to be the selling in Infosys. This counter is in the sideways mode. Bearish trigger level for this counter is placed closer to the last traded price. Bear pressure on Thursday is likely to trigger the downtrend 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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