The Hindu Business Line : Volatile movement

THURSDAY'S trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bearish. Bull pressure on Friday is likely to change the sentiment reading in their favour. On the contrary, the bearish sentiment is likely to be further strengthened.

Nifty futures: The February month contract opened with a bull gap of around one point and went up further by around 13 points. The February month contract moved within a range of around 28 points making an intra-day low of 3003.35. It closed with a loss of around 2 points from its previous close.

The short position in February month contract exited and entered a fresh long position in the morning session. The exit and sell levels for the February month contract are placed quite nearer to its last traded price. These levels are likely to be triggered during Friday's trading.

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Stock futures: The composition and the ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Tata Motors, Hindustan Lever and Tata Steel.

All the counters in the top-10 tradable list are likely to be under threat for Friday's trading. There are ample opportunities on the buy side and three opportunities on the sell side. The best for Friday is likely to be selling in Ranbaxy. This counter is in uptrend. Bear pressure on Friday is likely to reverse the existing trend in this counter.

Cash segment: The Composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. VSNL moved down to ninth position and Hindustan Lever moved up to eighth position.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Friday's trading. On the other hand, four downtrend counters are likely to be terminated. There are four opportunities on the buy side and two opportunities on the sell side. The best is likely to be selling in VSNL. This counter is in uptrend. Bear pressure on Friday 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.