Date:17/08/2006 URL: http://www.thehindubusinessline.com/2006/08/17/stories/2006081704171500.htm

Back Bulls prevail

K. Premkumar

Bulls prevailed over Wednesday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear move on Thursday is likely to change the sentiment reading in its favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures:

The August month contract opened with a bull gap of around 35 points. The August contract moved with in a range of around 33 points making an intra-day high of 3371.80. It closed with a gain of around 42 points from its previous close.

The long position in the August month contract remains intact and has locked in a profit of around 85 points. Both the long exit and short entry levels are placed quite far away from its last traded price. In the normal course of trading during Thursday these levels are unlikely to be triggered.

Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes.

Infosys and Tata Steel moved up and occupied fourth and seventh positions respectively, while ONGC and TCS moved down to fifth and eighth positions in the ranking.

Click here for table

The top-three tradable counters in this segment were Reliance, Century Tex and Sterlite.

All the counters in the list are in uptrend. Bear domination on Thursday is likely to terminate all the uptrend counters in the list. There are ample selling opportunities for Thursday's trading.

The best is likely to be selling in ACC. This counter is in uptrend. Bear move on Thursday is likely to reverse the existing trend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. All the counters in the list are in uptrend.

All the uptrend counters are likely to be under threat during Thursday's trading. There are ample selling opportunities for Thursday's trading.

The best is likely to be selling in ITC. This counter is in uptrend. Bear move on Thursday is likely to trigger the downtrend 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.