The Hindu Business Line : Sideways movement

Friday's trading activity witnessed side ways movement. The sentiment reading of the tradable counters remains bullish. Bear pressure on Monday 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 March month contract opened with a bull gap of around five points. The March month contract moved within a range of around 24 points making an intraday high of 3,144.90. It closed with a gain of around four points from its previous close.

The long position in the March month contract is intact. The long exit and short entry levels are placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Monday.

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Stock futures recommendation: 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, Maruti and Tata Steel.

All the counters in the top-10 tradable list are likely to be terminated during Monday. There are two opportunities on the buy side and ample opportunities on the sell side. The best is likely to be selling in ONGC. This counter is in up trend. Bear pressure on Monday is likely to reverse the existing trend in this counter.

Cash segment: The Composition and the ranking of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Titan went out of the list and gave way to ONGC. Reliance capital moved up to first position and L&T moved down to third position.

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