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Markets - Technical Analysis
Bull domination

K. Premkumar

Bulls dominated Thursday's trading activity. However, the sentiment reading of the tradable counters remains bearish. Bull move on Friday is likely to change the sentiment reading in their favour. On the other hand, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

Nifty futures: The October contract opened around its previous close. The October month contract moved within a range of around 92 points making an intraday high of 3634.20. It closed with a gain of around 85 points from its previous close.

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The short position in the October month contract exited and entered long. The long exit and short 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 trading on Friday.

Stock futures: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Reliance Industries and Maruti interchanged their positions. ACC moved up to eighth position pushing down Bajaj Auto to ninth position. The top-3 tradable counters in this segment were Reliance Industries, Tata Steel and Sterlite Solutions.

There are four uptrend counters and six down trend counters in the top-10 tradable list. All the counters in the tradable list are likely to be under threat for Friday's trading. There are ample opportunities on the buy side and two opportunities on the sell side for Friday's trading. The best is likely to be buying in Maruti. This counter is in down trend. Bull move on Friday is likely to change the prevailing trend in this counter.

Cash Segment: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. i-flex solutions moved up to third position and Infosys moved down to eighth position. Reliance Capital moved up to seventh position and HDFC moved down to last position.

There are four uptrend counters and six down trend counters in the top-10 tradable list. All the uptrend counters in the list are likely to be under threat for Friday's trading. On the other hand five down trend counters are likely to be terminated. There are five opportunities on the buy side and two opportunities on the sell side for Friday's trading. The best is likely to be buying in Tata Steel. This counter is in down trend. Bull 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.

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