The Hindu Business Line : Volatile movement

Thursday's market action witnessed volatile movement. However, the sentiment reading of the tradable counters continues to remain bearish. Bull pressure on Friday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to remain undisturbed.

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Nifty futures: The March month contract opened with a bear gap of around 18 points. However, bears could not capitalise on their initial move.

They gave way to bull pressure during the later part of the day's trading. The March month contract moved with in a range of around 83 points making an intra-day high of 3123.70. It closed with a gain of around 36 points from its previous close.

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

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

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 a lone opportunity on the sell side.

The best is likely to be buying in State Bank. This counter is in downtrend. Bull move on Friday is likely to reverse the existing trend in this counter.

Cash segment: The Composition and the ranking of the top-10 tradable list had minor changes. Satyam went out of the list and gave way to Tata Steel. Reliance capital moved down to tenth position from ninth position. The short exit level for Satyam is placed at 792.45. All the counters in the top-10 tradable list are likely to be terminated during Friday's trading. There are ample opportunities on the buy side. On the other hand, a lone opportunity on the sell side is likely to exist in Infosys. The best is likely to be buying in Tata Steel. Bull pressure on Friday is likely to trigger the uptrend in Tata Steel.

(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.