The Hindu Business Line : Bulls in control

THE sentiment reading of the tradable counters stands neutral. Bull pressure on Friday is likely to change the sentiment reading in their favour. On the contrary, the sentiment reading is likely to turn bearish.

Nifty futures recommendation: During the initial hour of Thursday's trading, the July contract lost three points. Thereafter, bulls gained total control of the day's proceedings. The July contract moved within a band of 41 points. It closed with a gain of 31 points with respect to Wednesday's close.

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The short position in the June contract expired. This position is likely to be closed out at 1470.75. Fresh entry levels are given for the July contract. Bullish entry level is placed quite closer to its current level. Bull move on Friday has the potential to trigger the uptrend in July contract. Bearish entry level is placed far away.

Stock futures recommendation: There were no new entries or exits to the top 10 tradable list. The ranking of the list had a minor change. Trading activity in ONGC was quite hectic on Thursday with more than 3,450 trades.

Most of the counters in the list are in the sideways mode due to expiration of the June contract. For Friday, the uptrend in CNX IT is likely to be under threat. Bulls are likely to have opportunity in M&M, Maruti, Reliance and State Bank of India. Selling opportunities are likely to exist in CNX IT, Tata Motors and Tata Steel. Buying in Maruti is likely to be the best bet for Friday's trading. Bullish trigger level for this counter is placed within a rupee from its last traded value. Bull pressure on Friday is likely to initiate the uptrend in Maruti.

Cash segment: The composition of the top 10 tradable list in this segment underwent a change. Canara Bank gained entry with the exit of M&M. The ranking of the list remains the same with no major changes. Friday's market action resulted in triggering the uptrend in Infosys.

Except for the uptrend in Satyam, all the other counters in the list are likely to be under threat. Buying opportunities are likely to exist in Maruti, ONGC and State Bank. A lone selling opportunity is likely to exist in Infosys. The best among the above is likely to be the buying in Maruti. This counter is in the sideways mode. Buy level for Maruti is placed closer to its current level. Bull move on Friday is likely to trigger the uptrend in Maruti.

(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.