The Hindu Business Line : Volatile condition prevails

Wednesday's market witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear move on Thursday 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 10 points from its previous close. However, the bears could not sustain the initial momentum and gave way to bull pressure.

The September month contract moved within a range of around 28 points. It closed with a gain of around 3 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 Thursday.

Stock futures

The composition and ranking of the top-10 tradable counters had minor changes. i-flex gave way to Tata Motors. Tata Motors occupied seventh position in the top-10 tradable list.

Tata Steel and Reliance moved up, while BHEL and Bajaj Auto moved down in the ranking.

The top-3 tradable counters in this segment were Reliance, Tata Steel, and Hindalco. The exit levels for ACC, Maruti and i-flex are placed at 931.50, 877.85, and 1448.65 respectively.

Most of the counters in the top-10 tradable list are in uptrend and are likely to be under threat for Thursday's trading.

There are ample selling opportunities and one buying opportunity for Thursday's trading.

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

Cash segment

The composition and the ranking of the top-10 tradable list had no changes.

Most of the counters in the list are in uptrend. Bear domination on Thursday is likely to terminate the uptrend counters in the list.

On the other hand, the three downtrend counters are likely to be terminated. There are ample selling opportunities and four buying opportunities for Thursday's trading.

The best is likely to be buying in HDFC. This counter is in downtrend. Bull move 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.