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 their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty Futures

The May contract opened around its previous close. It moved with in a range of around 59 points, clocking an all-time high of 3,621.60. It closed with a gain of around 13 points from its previous close. The long position in the May contract remains 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 Thursday's trading.

Stock futures

The composition of the top 10 tradable list had no changes. However, the ranking of the list had minor changes. MTNL moved up to second position, pushing down Maruti and Satyam to third and fourth positions respectively. Bajaj Auto and BHEL interchanged their positions. All the uptrend counters in the top 10 tradable list are likely to be under threat for Thursday's trading. On the other hand, except MTNL all other downtrend counters in the list are likely to be terminated.

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There are four opportunities on the buy side and five opportunities on the sell side. The best is likely to be buying in BHEL. This counter is in downtrend. Bull move on Thursday is likely to change the existing 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. SAIL moved up to seventh position from ninth position. The long exit level for SBI is placed at 934.95.

All the uptrend counters in the top 10 tradable list are likely to be under threat for Thursday's trading. On the other hand, two downtrend counters are likely to be terminated. There are four opportunities on the buy side and ample opportunities on the sell side. The best is likely to be buying in Tata Motors. This counter is in sideways mode. Bull pressure on Thursday is likely to initiate a fresh uptrend 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.