The Hindu Business Line : Volatile movement

The market on Wednesday witnessed a tug of war between bulls and bears. The sentiment reading of the tradable counters continues to remain bearish. 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 strengthened.

Nifty futures: The May contract opened around its previous close and went up by 42 points. However, they could not sustain their initial momentum and gave way to bears during the later part of the day's trading. The May contract moved within a range of around 180 points. It closed with a loss of around 133 points from its previous close.

The short position in the May contract remained undisturbed. The short exit and long entry levels are placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Thursday's trading.

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Stock futures: The composition and the ranking of the top-10 tradable list had no changes. For all the counters, the exit levels are given for May contract and the entry levels are given for June contract. The top-3 tradable counters in this segment were Reliance, Tata Steel and ACC.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Thursday's trading. On the other hand, Infosys is likely to be terminated. There are five selling opportunities. The buying levels are placed quite far away for Thursday's trading. The best opportunity for Thursday's trading is likely to be selling in Hindalco. Bear pressure on Thursday is likely to initiate a fresh downtrend in June contract in this counter.

Cash segment: The composition of the top-10 tradable list had changes. However, the list ranking had minor changes. ACC and Tata Motors moved up to fifth and sixth positions, respectively. Maruti and Tata steel interchanged their positions.

Bear pressure on Thursday is likely to terminate all the uptrend counters in the list. Selling opportunities are likely to exist in seven counters. The best bet for Thursday's trading is likely to be selling in Maruti. Bear 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.