The Hindu Business Line : Volatile movement

Tuesday's trading witnessed volatile movements. The sentiment reading of the tradable counters changed to neutral. Bull domination on Wednesday is likely to change the sentiment reading into bullish.

Nifty futures recommendation: The March-month contract opened with a bull gap of around 3 points. It moved with in a range of around 47 points making an intra-day high of 3278.90. March contract closed with a loss of around 1 point from its previous close.

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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 Wednesday.

Stock futures: The composition and the ranking of the top-10 tradable list had no changes. The top-3 tradable counters were State bank, Tata steel and Reliance.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. On the other hand, three down trend counters are likely to be terminated. There are three opportunities on the buy side and ample opportunities on the sell side. The best is likely to be selling in Hind Lever. This counter is in side ways mode. Bear move on Wednesday is likely to initiate a fresh down 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. Most of the counters interchanged their positions.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. On the other hand, three down trend counters are likely to be terminated.

There are three opportunities on the buy side and ample opportunities on the sell side. The best is likely to be selling in Tata steel. Bear pressure on Wednesday is likely to trigger the downtrend 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.