The Hindu Business Line : Volatile movement

Market on Tuesday witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear move on Wednesday is likely to change the sentiment reading to bearish. On the other hand, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures

The September month contract opened with a bear gap of around 5 points from its previous close. The September contract moved within a range of around 26 points. It closed with a loss of around 9 points from its previous close.

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The long position in the September contract remains intact. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during trading on Wednesday.

Stock futures

The composition of the top-10 tradable counters had no changes. However, the ranking of the top-10 tradable list had minor changes. Infosys moved to seventh position and Bajaj Auto occupied fifth position on the top-10 tradable list. Reliance occupied sixth position in the top-10 tradable counter and Satyam moved to eighth position.

The top-3 tradable counters in this segment were Tata Steel, Reliance and Hindalco. The exit levels for ACC, Ranbaxy and Maruti are placed at 922.95, 417.40, and 876.50 respectively.

All the counters in the top-10 tradable list are uptrend except Reliance and State Bank.

All the counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. There are ample selling opportunities for Wednesday's trading. On the other hand two buying opportunities are likely to exist in Reliance and BHEL.

The best is likely to be selling in Bajaj Auto. This counter is in uptrend. Bear move on Wednesday is likely to trigger the sell level in this counter.

Cash Segment

The composition and the ranking of the top-10 tradable list had no changes. There are seven uptrend and two downtrend counters in top-10 tradable list.

All the counters in the top-10 tradable list are likely to be under threat for Wednesday's trading except Maruti. This counter is in sideways mode. Three buying opportunities are likely to exist in Reliance industries, Maruti and HDFC. On the other hand, there are ample opportunities in sell side.

The best is likely to be selling in Hind Lever. This counter is in uptrend. Bear move 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.