Back Bear domination
K. Premkumar
THE sentiment reading of the tradable counters continues to remain bearish. Bull domination on Thursday has the potential to neutralise the sentiment reading. On the contrary, the prevailing bearish sentiment is likely to be continued.
Nifty futures recommendation: The October month contract opened with a bear gap of around 26 points. The October month contract moved with in a range of 60 points making an intra-day low of 2387.15. It closed with a loss of 47 points from its previous close.
The short position in the October month contract remains undisturbed. The exit and buying levels for the October month contract are placed quite far away. These levels are unlikely to be triggered during Thursday's trading.
Stock futures recommendation: The composition of the list had no changes. The ranking of the top-ten tradable list had minor changes. Infosys moved to fourth position and Satyam to the fifth position. Tata Motors and IPCL occupied sixth and seventh positions respectively. The top three tradable counters in this segment were Reliance, State Bank and Satyam.
There are no uptrend counters in the list. Most of the downtrend counters are likely to be under threat.
For Thursday's trading, all the buying levels are placed quite far away. The nearest buying opportunity is likely to exist in ICICI Bank. This counter is in down trend. Bull pressure on Thursday is likely to trigger the long position in ICICI.
Cash segment: The composition of the list had no changes. The ranking of the top-10 tradable list had minor changes. Reliance moved to second position and Sesa Goa to seventh position. Mcdowell occupied third position while Satyam down to fourth position.
There are no uptrend counters in the list. Bull domination on Thursday is likely to terminate almost five downtrend counters in the list.
The nearest buying opportunity is likely to exist in Satyam Computer for Thursday's trading. Bull domination on Thursday is likely to initiate 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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