The Hindu Business Line : Bear domination

Bears dominated Thursday's trading activity. However, the sentiment reading of the tradable counters remains bullish. Bear move on Friday 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

The November contract opened with a bull gap of around nine points from its previous close. However, the bulls could not sustain the initial momentum and gave way to bears. The November contract moved within a range of around 34 points making an intra-day low of 3,939. It closed with a loss of around 12 points from its previous close.

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The long position in the November contract remains intact. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during trading on Friday.

STOCK FUTURES

The composition of the top-10 tradable counters had no changes. However, the ranking had minor changes. Century Textiles and ONGC interchanged their positions and occupied third and fourth positions. Except Bank of India, all other uptrend counters are likely to be under threat for Friday's trading. On the other hand, all the downtrend counters are likely to be terminated. There are five selling opportunities and four buying opportunities for Friday's trading. The best bet is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Friday has a potential to trigger the short entry level in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. Tata Steel gave way to Tata Motors, which occupied ninth position. Zee Tele moved up and occupied eighth position. The long exit level for Tata Steel is placed at 469.20.

Except Zee Tele, the other uptrend counters in the top-10 tradable list are likely to be under threat for Friday's trading. On the contrary all the downtrend counters are likely to be terminated. There are three opportunities on the buy side and six opportunities on the sell side for Friday's trading. The best is likely to be selling in Tata Motors. This counter is in uptrend. Bear move 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 NSE. There is risk of loss in trading.)

The author is a technical analyst and fund management consultant.