The Hindu Business Line : Bulls prevail

BULLS gained control of Wednesday's trading activity. The sentiment reading of the tradable counters stands bullish. Bear domination on Thursday has the potential to turn the sentiment reading to bearish. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: During the open, the February month contract lost three points. Thereafter, bulls took charge of the day's proceedings. The February contract moved within a band of 23 points registering an intra-day high of 2085.00. It closed with a gain of 13 points with respective to previous close.

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The long position in the February contract remains undisturbed. The long position is locked-up with 54 points. In the normal course of trading on Thursday, the long position is likely to continue. However, bear domination has the potential to terminate the uptrend in the February contract.

Stock futures recommendation: The top-10 tradable list in this segment had a change. Arvind Mill gained entry with the exit of Maruti. The ranking of the list had some changes. ACC moved to the second position and Tata Motors moved to the sixth position. The exit level for the uptrend in Maruti and NTPC is placed at 464.20 and 85.45 respectively.

None of the counters in the list are in the downtrend. Bear pressure on Thursday could be a threat to most of the uptrend counters in the list. Buying opportunities are likely to exist in five counters. Selling opportunities are likely to exist in seven counters. Buying in Satyam is likely to be the best for Thursday's trading.

Bullish trigger level for this counter is placed quite closer to its current level. Bull move on Thursday is likely to initiate a fresh uptrend in Satyam.

Cash segment: The composition as well as the ranking of the top-10 active counters list remains unchanged. Wednesday's market action had no impact on the recommended counter - Tata Steel.

Bear domination on Thursday is likely to terminate most of the prevailing uptrend counters in the list. On the contrary, the prevailing downtrend counters are likely to be under threat. Four opportunities are likely to exist on either side of trading. Buying in ACC is likely to be the best bet for Thursday's trading. Buy level for this counter is placed within Rs 2 from its last traded value. Bull pressure on Thursday is likely to trigger the uptrend in ACC.

(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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