Back Bear domination
K. Premkumar
BEARS dominated over Thursday's trading activity. The sentiment reading of the tradable counters remains bearish.
Bull domination on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.
Nifty futures recommendation: The October month contract opened with bear gap of five points and went up by 24 points. However, bulls could not capitalise on their momentum and gave way to bears during the later part of day's trading.
The October month contract moved within a range of 34 points. It closed with a loss of around two points from its previous close.
The long position in the October month contract remains intact. The exit and sell 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-10 tradable list had minor changes. State Bank and Reliance interchanged their positions. The top three tradable counters in this segment were Tata Steel, Reliance and State Bank.
All the positions in the top-10 tradable list are likely to be under threat for Thursday's trading. There are three buying opportunities on the buy side and four selling opportunities on the bear side. The best for Thursday's trading is likely to be the selling in Tata Motors. This counter is in uptrend. Bear pressure on Thursday is likely to reverse the prevailing trend in this counter.
Cash segment: The composition and the ranking of the top-10 tradable list had minor changes. ITC went out of the top-10 tradable list and gave way for Ranbaxy. Satyam and Reliance interchanged their positions. State Bank moved to fourth and Infosys occupied fifth position. The short exit level for India Bulls and ITC are placed at 172.05 and 119.15 respectively.
Both the uptrend counters in the list are likely to be terminated. On the other hand, all the downtrend counters in the list are likely to be under threat for Thursday's trading. There are ample buying opportunities on the bull side. There are four selling opportunities on the bear side for Thursday's trading. The best for Thursday's trading is likely to be the buying in Sesa Goa. This counter is in sideways. Bull domination on Thursday is likely to initiate fresh 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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