The Hindu Business Line : Volatile movement

WEDNESDAY'S trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters turned bearish. Bull domination on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be strengthened.

Nifty futures recommendation: The October month contract opened with bull gap of 9 points. However, bulls could not capitalise on their momentum and gave way to bears during the later part of day's trading. The October month contract moved with in a range of 58 points. It closed with a gain of around 23 points from its previous close.

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The long position in the October month contract remains intact despite the volatile movement during the day's trading. The exit and sell levels for the October month contract are placed quite far away. These levels are unlikely to be triggered during Wednesday's trading.

Stock futures recommendation: The composition and the ranking of the top-10 tradable list had no changes.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. Bull pressure on Wednesday is likely to terminate down trend in three counters in the list. There are four buying opportunities on the buy side and five selling opportunities on the bear side. The best for Wednesday's trading is likely to be the selling in Hind Lever. This counter is in side ways. Bear pressure on Wednesday is likely to initiate fresh downtrend in this counter.

Cash segment: The composition and the ranking of the top-10 tradable list had minor changes. Ranbaxy went out of the top-10 tradable list and gave way for ITC. The short exit level for India Bulls and Ranbaxy are placed at 181.50 and 360.05, respectively.

Both the uptrend counters in the list are likely to be under threat for Wednesday's trading. On the other hand, two downtrend counters in the list are likely to be terminated. Buying opportunities are likely to exist in Infosys and State Bank. There are five selling opportunities on the bear side for Wednesday's trading. The best for Wednesday's trading is likely to be the selling in Infosys. Bear domination on Wednesday is likely to initiate downtrend in Infosys.

(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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