Back Bears strengthened
K. Premkumar
BEARS dominated Tuesday's trading activity. The sentiment reading of the tradable counters remained bearish.
Bull domination on Thursday is likely to change the sentiment reading in their favour. On the contrary, the bearish sentiment is likely to be further strengthened with additional counters.
Nifty futures recommendation The January month contract opened with a bear gap of around 11 points and further went down by 30 points.
The contract moved within a range of around 32 points, making an intra-day low of 2852.55. It closed with a loss of around 36 points from its previous close.
The long position in the January month contract has been terminated and the short position has been initiated.
The exit and buy levels are placed quite far away. These levels are unlikely to be triggered during Thursday's trading.
Stock futures recommendation The composition of the top-10 tradable list had no changes.
However, the ranking of the list had minor changes.
Tata Motors moved to the last position from the fifth. The top three tradable counters in this segment were Reliance, State Bank and IPCL.
Except Reliance, all the counters in the top-10 tradable list are likely to be under threat for Wednesday's trading.
Ample buying opportunities are likely in the bull side.
On the other hand, a lone selling opportunity is likely to exist in ONGC.
The best is likely to be selling in ONGC. This counter is in the up-trend.
A bear move on Thursday is likely to reverse the existing trend in this counter.
Cash segment The composition of the top-10 tradable list had minor changes. However, the ranking of the list did not change. ONGC was out of the top-10 tradable list and it was filled by Infosys.
There are no uptrend counters in the list.
All the downtrend counters in the top-10 tradable list are likely to be terminated during Thursday's trading.
There are ample opportunities on the buy side. The best bet is likely to be buying in ICICI Bank.
This counter is in downtrend. A bull move on Thursday is likely to reverse the existing trend 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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