The Hindu Business Line : Volatile movement

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

Nifty Futures Recommendation: The April month contract opened with a bull gap of around 18 points and further went up by around 39 points. However, bulls capitalise on the initial movement and gave way to bears during the later part of day's trading. April contract moved within a range of around 74 points making an all-time high of 3582. It closed with a gain of around 22 points from its previous close.

The long position in the April month contract remains intact. The exit level is placed with a locked profit of 115 points. The short entry level is placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Thursday.

Stock Futures Recommendation: The composition and the ranking of the top-10 tradable list had minor changes. Hindalco went out of the list and gave way to Bajaj Auto. ACC and Satyam interchanged their positions. IPCL moved down to the last position from ninth position.

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All the uptrend counters in the top-10 tradable list are likely to be under threat for Thursday's trading. On the other hand, Maruti is likely to be terminated. There are no downtrend counters in the list. There is a lone opportunity on the buy side and ample opportunities on the sell side. The best is likely to be selling in Jet Airways. This counter is in uptrend. Bear pressure on Thursday is likely to trigger the downtrend in this counter.

Cash Segment: The composition of the top-10 tradable list remains unchanged. However, the ranking of the list had minor changes. HLL and Tata Motors interchanged their positions.

Most of the counters in the top 10 tradable list are under threat for Thursday's trading. There are five opportunities on the bull side and three opportunities on the bear side. The best is likely to be selling in Satyam Computers. This counter is in uptrend. Bear pressure on Thursday 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.