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Bear domination

K. Premkumar

THE Bears intensified their pressure on Thursday. This brought about a drastic fall in the stock prices. The bulls were unable to make any impact during the day's trading.

The market sentiment reading of the tradable counters continues to remain bearish. Bear domination on Friday is likely to further strengthen the sentiment reading in favour of the bears. Otherwise, it will remain the same.

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Nifty futures recommendation: The movement in the January contract was around 17 points. It closed with a loss of nine points with respect to previous close. Bear domination led to the initiation of fresh downtrend in January contract.

In the normal course of trading on Friday, the prevailing downtrend in the January contract is likely to continue. Its exit and bullish trigger level is placed quite far away from its current level.

Stock futures recommendation: The composition and the ranking of the top-10 tradable counters in the futures segment remain intact. Satyam Computers remains as the top traded counter followed by Digital and Reliance Petro in the stock futures segment.

Positions in the expired December future contract will be automatically closed-out with the respective closing stock prices in the cash segment.

Bull domination on Friday is likely to be a threat to the downtrend in Infosys and Tata Engineering. Opportunities are likely to exist only on the short side for Friday's trading. This is likely to exist in ACC, Digital, Dr Reddy's, Reliance Industries a nd Reliance Petro.

Dr Reddy's Lab is likely to be the best for Friday's trading.

The counter is currently in the sideways mode. Its bearish trigger level is placed quite closer to its last traded price. Bear pressure on Friday is likely to initiate a fresh downtrend in this counter.

Cash segment: The top-10 tradable counters and their ranking remain unchanged in the cash segment. Bull domination on Friday could be a threat to the downtrend in Infosys.

The bear pressure existing in the market has placed the bullish trigger levels for all the counters quite far away from their current level, thus leaving the traders with opportunities only on the short side.

It is likely to exist in Himachal Futuristic and SSIL.

Between the two, SSIL is likely to be the best for Friday's trading.

The counter is in the sideways trend.

A bear move on Friday is likely to trigger it sell level.

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 Chennai-based technical analyst and fund management consultant.