The Hindu Business Line : Volatile movement

MARKET witnessed a volatile movement on Friday. Bears managed to gain marginally from the day's trading. However, the sentiment reading of the tradable counters continues to remain bullish. Bear pressure on Monday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The September month contract opened lower with a bear gap of around nine points. Later on, bulls managed to gain around 22 points. However, during the close, bears regained their initial momentum. The September contract moved with in a band of 23 points. It closed with a marginal loss of three points with respect to Thursday's close.

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The long position in the September contract survived from the bear pressure on Friday. The exit and bearish trigger levels for the September contract remains unchanged.

Stock futures recommendation: There are no new entries or exits to the top 10 tradable list. The ranking of the list had a minor change. Ranbaxy and ONGC interchanged their positions.

Further bear move on Monday is likely to terminate most of the up trend counters in the list. On the other hand, the downtrend in CNX IT, Infosys and Satyam are likely to be under threat. Selling opportunities are likely to exist in five counters. Buying opportunities are likely to exist in three counters. Selling in Maruti is likely to be the best bet for Monday's trading. This counter is in the up trend. The exit and bearish trigger levels are placed very close to its last traded value. Bear pressure on Monday is likely to trigger these levels.

Cash segment: The composition as well as the ranking of the top 10 tradable list remains unchanged. Friday's market action resulted in triggering of downtrend in the recommended counter-Wipro.

Bear domination on Monday could be a threat to the prevailing up trend counters in the list. On the contrary, downtrend in Infosys, Reliance, Satyam and Wipro are likely to be terminated. Bears are likely to have opportunities in four counters. Buying opportunities are likely to exist in three counters for Monday's trading. Selling in State Bank is likely to be the best for Monday's trading. This counter is in up trend. Bear domination on Monday has the potential to reverse the prevailing trend in State Bank.

(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.