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Indices neutralised

K. Premkumar

THE downtrends in both the indices were neutralised in the initial bull move on Wednesday. The sentiment of the market became mildly bearish. The bullish trigger levels of the indices are far away and are unlikely to be triggered on Thursday. The bearish trigger levels are very close, and hence, are likely to be triggered in case of a bear move.

In case of a bull move, the sentiment is likely to become bullish. In case of a bear move, the bullish sentiment is likely to continue gaining strength.

Index watch: The S&P CNX Nifty opened with a marginal bear gap of one point on Wednesday. In the initial bull move, the index gained about 12 points during which the downtrend was neutralised. Later on, the bears took over and the index lost about 27 poi nts in the day. Finally, the close was a few points above the day's low. This was a loss of about 14 points from the previous last traded value.

The bearish trigger level is just six points away. Hence, a bear move on Thursday is likely to trigger a downtrend in the index. The bullish trigger level being quiet far off is unlikely to be triggered.

The Sensex opened with a bull gap on Wednesday. In the initial hours, it gained about nine points and thereby neutralised the prevailing downtrend. Later on, the bears dominated the day and it lost about 86 points and closed for the day. This close was a bout 63 points below the previous last traded value.

The bearish trigger level is very close - about 13 points away and is likely to be triggered in case of a bear move on Thursday. The bullish trigger level is very far off and is unlikely to be triggered.

Scrip watch: There have been no changes in the top-20 list. There has been a slight change in the ranking of the top-20 with Digital occupying the eleventh, and Wipro, the tenth positions.

The sentiment of the market turned bearish on Wednesday with the bears dominating the day. This sentiment is likely to gain further strength in case of a bear move on Thursday. In case of a bull move, the sentiment is likely to become bullish.

In case of a bull move, the downtrend in Ranbaxy is likely to be under threat. In case of a bear move, the uptrends in DSQ Software, Wipro, Reliance, NIIT, MTNL, ACC, L&T and ITC are likely to be under threat.

A lone buying counter exists for the bulls for Thursday. Selling opportunities for the bears exist in DSQ Software, Infosys, Wipro, Reliance, NIIT, ACC and L&T. Among the above-recommended counters, the best is likely to be the selling in Wipro. This cou nter is at present in the buy position.

In case of a bear move on Thursday, it is likely to trigger its sell level, which is just five paise away from its last traded value.

(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.