The Hindu Business Line : Volatile movement

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

Nifty futures

The September month contract opened with a bear gap of around 3 points from its previous close. However, the bears could not sustain the initial momentum and gave way to bulls. The September contract moved with in a range of around 77 points making an intra-day high of 3392. It closed with a gain of around 30 points from its previous close.

The short position in the September contract remains intact and has locked a profit of around 40 points. The short exit and long 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 minor changes while ranking had a revamp. SBIN gave way to ONGC.

ONGC occupied tenth position in the top-10 tradable list. Tata Steel moved up in the ranking and occupied first position. Infosys and Reliance moved down in the ranking.

Click here for table

The top-3 tradable counters in this segment were Reliance, Reliance Capital and Tata Steel. The exit levels for Bajaj Auto, i-flex and SBI are placed at 2729.05, 1445.05 and 940.45 respectively. Most of the counters in the top-10 tradable list are in downtrend. All the downtrend counters except Infosys are likely to be under threat for Wednesday's trading. There exist ample buying opportunities and one selling opportunity for Wednesday's trading.

The best is likely to buying in Tata Steel. This counter is in downtrend. Bull move on Wednesday is likely to trigger the uptrend in the counter.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. Most of the counters in the top-10 tradable list are in downtrend. All the downtrend counters are likely to be under threat for Wednesday's trading.

On the other hand, the lone uptrend counter HDFC is likely to be terminated. There are ample buying opportunities and two selling opportunities for Wednesday's trading.

The best is likely to be buying in Reliance Industries. This counter is in downtrend. Bull 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.