The Hindu Business Line : Volatile movement

Friday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters turned to bullish. Bear domination on Monday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures: The June month contract gapped up by 70 points and went up by another 65 points. However, bulls could not capitalise on their initial move and gave way to bear pressure. The June month contract moved within a range of around 112 points. It closed with a gain of around 70 points from its previous close.

Click here for table

The June contract entered into a fresh long position. 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 Monday'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 down to seventh position and Hindalco moved up to second position. Satyam moved up to third position and Maruti moved down to fifth position. The top-3 tradable counters in this segment were Tata Steel, Reliance and Hindalco.

All the counters in the top-10 tradable list are likely to be terminated during Monday's trading. Opportunities are likely to exist in all the counters in the list. The best is likely to be selling in Reliance. This counter is in uptrend. Bear pressure on Monday is likely to reverse the existing trend in this counter.

Cash segment: The composition of the top-10 tradable list had minor changes. Gujarat Ambuja Cement went out of the list and gave way to Infosys. The ranking of the list had no changes. The exit level for Gujarat Ambuja Cement is placed at Rs 96.45.

All the uptrend counters in the list are likely to be under threat for Monday's trading. All the buying levels are placed quite far away. There are ample selling opportunities for Monday's trading. The best bet for Monday's trading is likely to be selling in VSNL. Bear move on Monday 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.