The Hindu Business Line : Volatile movement

FRIDAY'S market activity witnessed volatile movement. The tug of war between bulls and bears had no impact on the sentiment reading. The sentiment reading of the tradable counters continues to remain neutral. Bear domination on Monday has the potential to change the sentiment reading in their favour. On the contrary, sentiment reading is likely to turn bullish.

Nifty Futures Recommendation: The October month contract gapped up by five points. But the bulls could not sustain their initial momentum and gave way to the bears.

Click here for table

After touching an intra-day low of 2,555, bears could not sustain their pressure for the rest of the day's trading. Bulls managed to regain most of their losses by the end of the trading session. The October contract moved within a range of 56 points. It closed lower with a loss of 10 points from Thursday's close.

The day's market action had no impact on the recommended levels. The October contract still remains in sideways mode. Both the entry levels are still placed quite far away. In the normal course of trading during Monday, new position in the October month contract is unlikely to be initiated.

Stock Futures Recommendation: The composition as well as the ranking of the top 10 tradable list remains unchanged. The top three traded counters in this segment were Reliance, Tata Steel, and Reliance Capital.

All the positions in the list on the either side are likely to be terminated during Monday's trading. There are plenty of opportunities on both sides for Monday's trading. The best is likely to be buying in IPCL. This counter is in sideways mode. Bull pressure on Monday is likely to initiate fresh uptrend in IPCL.

Cash Segment: There were changes to the top 10 tradable list. Rolta and Satyam gave way to Scandent solutions and SBI. The new entrants in the list occupied the last two rankings.

All the uptrend counters in the list are likely to be under threat. However, bull move on Monday is likely to terminate downtrend in Reliance Industries and SRF. Bears are unlikely to have any opportunities for Monday's trading.

Buying opportunity is likely to exist in the lone counter- Reliance Industries. Buying in Reliance Industries is the best for Monday's trading. Bull move on Monday is likely to reverse the prevailing down 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.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Anant Raj Industries allots shares to foreign, domestic investors

StanChart lines up another equity fund

CSE asks members not to trade in 6 cos

SBI MF raises stake in Nagarjuna Construction

Volatile movement

Shift towards IT stocks

Markets end in negative zone despite last hour surge

DSP Merrill Lynch is advisor for Air India's IPO

Shree Renuka Sugars plans IPO

SEBI crackdown on two more cos for price manipulation