The Hindu Business Line : Volatile movement

WEDNESDAY'S trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters remains bullish. Bear domination on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The December month contract opened with a bull gap of around four points. The December month contract moved with in a range of around 33 points making an intra-day low of 2784.25. It closed with a loss of around six points from its previous close.

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The long position in the December month contract remains intact with a locked profit of around 85 points. The exit level is placed quite nearer and the sell level is placed quite far away from its last traded price. The exit level is likely to be triggered during Thursday's trading.

Stock futures recommendation: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Steel and Reliance interchanged their positions. The long exit level for ONGC is placed at 1115.95. The top three tradable counters in this segment were VSNL, Tata Steel and State Bank.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Thursday's trading. On the other hand, downtrend counter in Reliance is likely to be terminated. There are two opportunities on the buy side and five opportunities on the sell side. The best for Thursday's trading is likely to be selling in Infosys. This counter is in sideways mode. Bear move on Thursday is likely to initiate a fresh downtrend in this counter.

Cash segment: The composition and the ranking of the top-10 tradable list had minor changes. Tata Steel, Hind Lever, Jaiprakash Associates went out of the list and Tata Motors, ONGC, ITC got into the list. VSNL and State Bank interchanged their positions. The exit levels for Tata Steel, Hind Lever, Jaiprakash Associates and Bharti-Tele are placed at 363.35, 190.05, 343.10 and 348.20, respectively.

All the uptrend counters in the top-10 tradable list are likely to be terminated during Thursday's trading. On the other hand, two downtrend counters in the list are likely to be under threat. There are three opportunities on the buy side and two opportunities on the sell side for Thursday's trading.

The best for Thursday's trading is likely to be buying in Reliance. This counter is in downtrend. Bull pressure on Thursday is likely to reverse the existing 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.