The Hindu Business Line : Bears prevail

BEARS maintained their pressure over Wednesday's trading. Their supremacy for the third successive trading left the bulls stranded. The sentiment reading of the tradable counters remains strongly bearish with no uptrend counters. Bull domination on Thursday is likely to change the sentiment reading in its favour.

Nifty Futures Recommendation: The August month contract opened with a loss of five points and went further by another 26 points. During the wee hours of the day's trading, bulls made a strong comeback and wiped out their losses. The August contract moved within a band of 38 points registering an intra-day high of 2336. It closed with a marginal loss of two points with respect to Tuesday's close.

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The day's move had no impact on the recommended levels. Thursday being the expiry day for the August contract, the prevailing short position may be held with the stop placed at 2336.05. Bull pressure on Thursday is likely to terminate the downtrend. Bullish entry level is given for the September contract.

Stock Futures Recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had some changes. Tata Steel moved to the second position and BHEL moved down to the seventh position. The exit levels for the short position in Bank of India, ICICI Bank and REL are placed at 131.45, 498.05 and 604.55, respectively.

Bull move on Tuesday is likely to terminate five of the nine counters in the list. Fresh entry levels for all the counters are given for the September contract. Selling opportunities are unlikely to exist for Thursday's trading. Buying opportunities are likely to exist in five counters. For Thursday, the best bet is likely to be the buying in BHEL. This counter is in the sideways mode. Buy level for this counter is placed closer to the current level. Bull pressure on Thursday is likely to trigger the uptrend in BHEL.

Cash Segment: The composition as well as the ranking of the top-10 active counters list remains intact. Wednesday's market action resulted in triggering the downtrend in the recommended counter - Infosys.

All the counters in the list are in the downtrend. Bear pressure on Thursday is likely to reduce the bear count by a considerable margin. Bulls are likely to have opportunity in Infosys, Reliance and Tata Motors. The best among the above is likely to be Reliance. The exit and bullish trigger levels for this counter are placed quite closer to the last trade price. Bull move on Thursday has the potential to reverse the prevailing downtrend in Reliance.

(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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