The Hindu Business Line : Volatile movement

Tuesday's trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters remains bullish. Bear domination on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures: The March month contract opened with a bull gap of around 16 points. It moved within a range of around 35 points making an intraday high of 3,345.95. March contract closed with a gain of around eight 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 Wednesday.

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

All the counters in the top-10 tradable list are likely to be terminated during Wednesday's trading. There are each four opportunities on either side of the trading. The best is likely to be buying in Satyam. Bull pressure on Wednesday is likely to trigger the uptrend 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. Reliance Energy and SAIL interchanged their positions. Tata Steel occupied eighth position while State Bank and VSNL moved down to ninth and tenth positions respectively.

All the existing positions in the top-10 tradable list are likely to be under threat for Wednesday's trading. There are three opportunities on the buy side and ample opportunities on the sell side. The best is likely to be selling in VSNL. This counter is in 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.