The Hindu Business Line : Bulls stranded

NEITHER bulls nor bears could gain much from the day's trading. However, the sentiment reading of the tradable counters turned bullish. Bear pressure on Friday is likely to turn the sentiment reading to bearish, otherwise the prevailing sentiment is likely to be strengthened.

Nifty futures recommendation: During the initial hour of the day's trading, the August contract opened with a bull gap of 4 points and went further by 10 points making an intra-day high of 2420. But bulls were not able to sustain their early momentum and fell prey to bear pressure. The August contract moved within a band of 44 points. It closed lower with a loss of 20 points from its previous close.

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Today's market action had no impact on the day's trading. Exit level for the long position has moved closer to the last traded price. Bear pressure on Friday has the potential to terminate the uptrend. Short entry level for August contract is placed at 2348.50.

Stock futures recommendation: The composition and ranking of the top-10 active counters list remains unchanged. The exit levels for the downtrend in ICICI Bank, NTPC and REL are placed at 504.80, 98.40 and 621.05. The uptrend in ONGC is likely to terminate at 978.55.

For Friday, all the counters in the list are likely to be under threat. Buying opportunities are likely to BoB, Tata Steel and ONGC.

There are ample opportunities available on the sell side for Friday's trading. Selling in i-flex is likely to be the best bet for Friday's trading. Bear move on Friday is likely to initiate the downtrend in the recommended counter.

Cash segment: The composition of the top-10 tradable counters had no change. Ranking of the list had slight changes. Tata Motors moved to the seventh position followed by Infosys, ONGC and i-flex.

There are no downtrend counters in the list. All the uptrend counters in the list are likely to be under threat. Bears are likely to have opportunity in eight counters. Buying opportunities are likely to exist in Satyam Computers and SAIL. Selling in Tata Steel is likely to be the best for Friday's trading. This counter is in uptrend. Exit and bearish trigger levels for this counter is placed closer to its last traded price.

Bear pressure on Friday is likely to reverse the uptrend in the recommended 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.

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