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K. Premkumar

BEARS exerted further pressure during Thursday's trading. Bulls were unable to make any impact during the day's trading. The market sentiment reading of the tradable counters continues to remain bearish. Bull domination on Friday is likely to change the sentiment reading in its favour. On the contrary, the prevailing bearish sentiment is likely to continue with added strength.

Nifty futures recommendation: March contract moved within a band of 14 points. Bears were in total control of the day's proceedings leaving the bulls with no opportunity to recover. The March contract closed with a loss of 11 points with respect to previous close.

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The day's move had no impact on the recommended levels. The short position in the March contract is now locked up with a nominal profit of 10 points. Bullish trigger level for the March contract is still placed far away and this is unlikely to be triggered on Friday.

Stock futures recommendation: Mastek and Polaris Soft gained entry to the top-10 tradable list with the exit of BHEL and MTNL. The ranking of the list had some changes. Hindustan Petro moved to the fourth position and Tata Engg to the ninth position. The top three traded counters in this segment were Satyam Computer, Infosys and State Bank.

The exit level for the downtrend in MTNL is placed at Rs 104.10.

None of the counters in the list is in the uptrend. Bull domination on Friday could be a threat to five of the seven prevailing downtrend counters. Selling opportunities are likely to exist in Digital, Mastek and Tata Steel. Buying opportunities are likely to exist in five counters.

Selling in Tata Steel is likely to be the best bet for Friday's trading. Its bearish trigger level is placed very close to its current level. Bear pressure on Friday is likely to trigger this level.

Cash segment: The composition of the top-10 tradable list had a change. VisualSoft gained entry with the exit of Hinduja TMT. The ranking of the list remains the same with no major changes.

Bull domination on Friday could be a threat to the downtrend in Digital, Infosys, Reliance Industries and Satyam Computer. On the other hand, the lone uptrend counter Hughes Soft is likely to be under threat. Bears are likely to have opportunity in Geometric Soft, Hexaware and Mastek. Buying opportunities are likely to exist in Infosys, Reliance Industries and Satyam Computer.

The best among the above is likely to be Geometric Soft. Its sell level is placed closer to its last traded price. Bear move on Friday is likely to initiate a fresh downtrend in the 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 Chennai-based technical analyst and fund management consultant.

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