The Hindu Business Line : Volatile movement

BULLS were in control of the initial hours of Thursday's trading. Later, bears made a strong comeback and recovered their early losses. Neither the bulls nor the bears could gain much from the day's trading. The sentiment reading of the tradable counters stands neutral. Bear domination on Friday is likely to change the sentiment reading in their favour. On the contrary, the prevailing sentiment is likely to continue with a slight change in its value.

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Nifty futures recommendation: August contract opened with a bull gap of around 6 points and went further by another 8 points. Thereafter, bears took over and were in total control of the day's proceedings. The movement in the August contract was around 19 points. It closed with a marginal loss of 3 points with respect to Wednesday's close.

Bulls were successful in terminating the downtrend in the July contract. The short trade exited with a nominal profit of 13 points. Re-entry level on the short side for August contract is placed quite closer to its last traded value. Bear move on Friday is likely to initiate the downtrend in the August contract. Bullish trigger level remains unchanged and this is unlikely to be triggered on Friday.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. Digital moved to fourth position followed by Hindustan Petro and Tata Engg. Trading activity in L&T was quite impressive on Thursday with more than 1150 trades.

Entry levels for all the counters are given for August contract. None of the counters in the list is in the uptrend. The downtrend in BPCL and Hindustan Petro is likely to be under threat. Bears are likely to have opportunity in seven counters. Buying opportunities are likely to exist in BPCL, Infosys and Ranbaxy.

The best is likely to be the selling in Digital. Its sell level is placed very close to its current level. Bear pressure on Friday is likely to trigger this level.

Cash segment: The composition and the ranking of the top-10 tradable counters in the cash segment remain undisturbed. Bear domination on Friday is likely to terminate all the uptrend counters in the tradable list. The prevailing downtrend counters are likely to be safe. Bulls are unlikely to have any opportunity for Friday's trading. Selling opportunities are likely to exist in Infosys, Rolta and VisualSoft.

The best among the above is likely to be in Infosys. Its bearish trigger level is placed quite closer to its last traded price. Bear move on Friday has the potential to initiate the downtrend in the 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 Chennai-based technical analyst and fund management consultant.

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