The Hindu Business Line : Bear domination

The sentiment reading of the tradable counters continued to remain bearish. Bull domination on Friday is likely to reduce the bear count. On the contrary, the prevailing sentiment reading is likely to be further strengthened with added counters.

Nifty futures recommendation

The June-month contract opened with a bear gap of around 28 points and went further down by 138 points, making an intra-day low of 2671.20. Bulls were not able to make any impact on Thursday's trading. The June-month contract moved with in an intra-day range of 140 points. It closed with a loss of 147 points from Wednesday's close.

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The June-month contract continued to be in the short position with a locked profit of around 140 points. The short exit and long entry levels are placed quite far away from the last traded price. In the normal course of trading on Friday, these levels are unlikely to be triggered.

Stock futures recommendation

The composition and the ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Reliance, Tata Steel and Hindalco.

There are no uptrend counters in the list. The downtrend counter Maruti is likely to be under threat for Friday's trading. A lone buying opportunity is likely to exist in Maruti. Selling opportunity is likely to exist in BHEL. The best is likely to be selling in BHEL. This counter is in sideways mode. Bear pressure on Friday is likely to initiate a fresh down trend in this counter.

Cash segment

The composition and ranking of the top-10 tradable had minor changes. Reliance Capital made its way in to top-10 pushing out Satyam Computers. Short exit level for Satyam Computers is placed at Rs 612.05.

All the counters in the list are in downtrend. Maruti, ONGC and Tata Motors are likely to be under threat for Friday's trading. Buying opportunities are likely to exist in three counters. The best is likely to be buying in Maruti. Bull domination on Friday is likely to reverse the existing trend in this counter.

(Note: All price levels refer to the absolute value of the shares traded on the National Stock Exchange. There is risk of loss in trading.)

The author is a technical analyst and fund management consultant.