The Hindu Business Line : Volatile movement

Thursday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear move on Friday 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 August month contract opened with a bull gap of around 66 points. However, the bulls could not capitalise on their initial momentum and gave way to bear pressure during the latter part of Thursday's trading. The August month contract moved with in a range of around 77 points making an intra-day low of 3160.15. It closed with a loss of around 10 points from its previous close.

The long position in the August month contract remains intact. Both the long exit & short entry levels are placed quite nearer to Thursday's last traded price. These levels are likely to be triggered during Friday's trading.

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Stock futures

The composition and ranking of the top-10 tradable list had minor changes. Bajaj Auto moved out of the list giving way to Maruti. Maruti occupied the 10th position in the ranking. Tisco occupied the sixth position while ONGC and Satyam moved up in the ranking. The top-3 tradable counters in this segment were Reliance, Tisco and Century Tex. The exit levels for Ranbaxy and Bajaj auto are placed at 379.55 and 2542 respectively.

All the counters in the top-10 tradable list are in uptrend and are likely to be under threat for Friday's trading. There are ample selling opportunities for Friday's trading. The best is likely to be selling in Tisco. This counter is in up trend. Bear move on Friday is likely to reverse the existing trend in this counter.

Cash segment

The composition and ranking of the top-10 tradable list had no changes. There are no downtrend counters in the list. All the uptrend counters are likely to be under threat for Friday's trading. There are ample selling opportunities for Friday's trading. The best is likely to be selling in Satyam. This counter is in up trend. Bear move on Friday is likely to trigger the downtrend 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.