The Hindu Business Line : Bears prevail

THE sentiment reading of the tradable counters continues to remain bearish. Bull domination on Friday has the potential to neutralise the sentiment reading. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

Nifty futures recommendation: The October month contract opened with a bull gap of around 24 points and went further up by another 15 points. However, bulls could not capitalise on their initial momentum and gave way for bears. The October month contract moved with in a range of 85 points making an intraday low of 2,360. It closed with a loss of around 5 points from its previous close.

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The short position in the October month contract remains undisturbed and it is moved to profitable zone. The exit and buying levels for the October month contract is placed quite far away. In the normal course of trading these levels are unlikely to be triggered.

Stock futures recommendation: The composition of the list had no changes. The ranking of the top-ten tradable list had minor changes. Infosys and Satyam interchanged their positions. ONGC occupied ninth position and Hind Lever occupied tenth position. The top three tradable counters in this segment were State Bank, Satyam and Reliance.

The lone uptrend counter Satyam is likely to be under threat for Fridays's trading. On the other hand, the two down trend counters IPCL and Hind Lever are likely to be terminated. There are three buying opportunities in bull side and it is likely to exist in Reliance, IPCL and Infosys. Selling opportunities are likely to exist in Reliance, Infosys and ICICI. The best for Fridays's trading is likely to be buying in Infosys. This counter is in side ways. Bull pressure on Friday is likely to initiate a fresh uptrend in this counter.

Cash segment: The composition of the list had no changes. The ranking of the top-10 tradable list had minor changes. Sesa Goa moved to tenth position and State Bank moved to ninth position. SRF and Satyam interchanged their positions.

The uptrend in Satyam is likely to be under threat. There is no bear threat for Friday's trading. Buying opportunities are likely to exist in Reliance, Infosys and Sesa Goa. Selling opportunities are likely to exist in three counters in the list. The best for Friday's trading is likely to be buying in Infosys. Bull domination on Thursday is likely to initiate uptrend in this 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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