The Hindu Business Line : Volatile movement

TUESDAY'S trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear pressure on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures recommendation: The February month contract opened with a bull gap of around 14 points. The February month contract moved within a range of around 40 points making an intra-day high of 3012.40. It closed with a gain of around 10 points from its previous close.

The long position in the February month contract remains intact. The exit and sell levels for the February month contract are placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Wednesday's trading.

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Stock futures recommendation: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Motors and Reliance interchanged their positions. ICICI bank and ONGC interchanged their positions. The top-3 tradable counters in this segment were Reliance, Tatamotors and State Bank.

All the upcounters in the top-10 tradable list are likely to be under threat for Wednesday's trading. On the other hand, State Bank is likely to be terminated. There is a lone opportunity on the buy side likely to exist in State Bank. There are ample opportunities on the sell side. The best for Wednesday is likely to be selling in Ranbaxy. This counter is in an uptrend. Bear pressure on Wednesday is likely to reverse the existing trend in this counter.

Cash segment: The composition and ranking of the top-10 tradable list had minor changes. ONGC went out of the list and gave way to ICICI Bank. VSNL moved up to fifth position and State Bank moved down to seventh position.

All the counters in the top-10 tradable list are likely to be terminated during Wednesay's trading. There is a lone opportunity on the buy side and ample opportunities on the sell side. The best is likely to be selling in Satyam. This counter is in an uptrend. Bear pressure on Wednesday 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.