The Hindu Business Line : Bull domination

Bulls dominated Wednesday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation

The August month contract opened with a bear gap of around 14 points. However, the bears could not capitalise on their initial momentum and gave way to bull pressure. The August month contract moved within a range of around 60 points making an intra-day high of 3,177. It closed with a gain of around 40 points from its previous close.

The short position in the August month contract exited and entered long. Both the long exit and short entry levels are placed quite far away from Wednesday's last traded price. These levels are unlikely to be triggered during Thursday's trading.

Futures Recommendation

The composition and ranking of the top-10 tradable list had minor changes. Ranbaxy moved out of the list giving way to TCS. TCS occupied third position in the ranking. The top-3 tradable counters in this segment were Reliance, Tata Steel and STER. The exit levels for Nalco, Hind Lever and Ranbaxy are placed at 195.60, 229.05 and 369.95 respectively.

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All the counters in the top-10 tradable list are in uptrend and are likely to be under threat for Thursday's trading. There are ample selling opportunities for Thursday's trading. The best is likely to be selling in Infosys. This counter is in uptrend. Bear move on Thursday is likely to reverse the uptrend in this counter.

Cash Segment

The composition and ranking of the top-10 tradable list had minor changes. ONGC moved out of the list giving way to L&T. L&T occupied 10th position in the top-10 tradable list.

Most of the counters in the list are in uptrend. SAIL is the only downtrend counter in the list. All the counters in the top-10 tradable list are likely to be under threat for Thursday's trading. There are ample selling opportunities and one buying opportunity for Thursday's trading. The best is likely to be buying in SAIL. This counter is in downtrend. Bull move on Thursday 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 NSE. There is risk of loss in trading.)

The author is a technical analyst and fund management consultant.