The Hindu Business Line : Bears prevail

The sentiment reading of the tradable counters remains bearish on Wednesday. Bull domination on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with added counters.

Nifty futures

The June month contract opened with a bear gap of around 75 points and went further down by 100 points making an intra-day low of 2908. During the afternoon session bulls were able to partially recoup their initial losses. It closed with a loss of 104 points from yesterday's close.

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The short position in the June month contract remains undisturbed with stop-loss placed at 3062.90 locking in a profit of 85 points. The short exit and long entry levels are placed quite closer to its last traded price. It is likely to be triggered during Thursday's trading activity.

Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking of the list had some changes. MTNL moved to seventh position and Maruti and BHEL interchanged their positions. The top-3 tradable counters in this segment were Reliance, Tata Steel and Infosys.

There are no uptrend counters. All the downtrend counters in the top-10 tradable list are under threat for Thursday's trading. There is ample number of opportunities on buy side of trading. The best bet is likely to be buying in Reliance Industries. This counter is in downtrend. Bull pressure on Thursday is likely to initiate an uptrend in this counter.

Cash segment

The composition and ranking of the top-10 tradable list had minor changes. Reliance Capital made its way into top-10 tradable list as State Bank went out. The short exit level for State Bank is placed at 855.05.

Four downtrend counters Reliance Industries, ACC, Tata Motors & Gujarat Ambuja are likely to be under threat for Thursday's trading. There are no opportunities on the bear side. There are four opportunities on the bull side. The best bet is likely to exist in buying in Reliance Industries. This counter is in downtrend.

(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.