The Hindu Business Line : Bulls prevail

Bulls prevailed over Friday's trading activity. However the sentiment reading of the tradable counters turned to bullish. Bear move 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 with additional counters.

Nifty Futures: The October month contract opened with a bull gap of around 20 points from its previous close. It moved within a range of around 40 points making an intraday high of 3,689. It closed with a gain of around 53 points from its previous close.

The long position in the October month contract remains intact. 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 trading on Monday.

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Stock Futures: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Reliance Industries and ACC moved up to third and fourth positions, respectively, pushing down Tata Motors to fifth position. The top-3 tradable counters in this segment were Reliance Industries, Sterlite Solutions and Tata Steel.

There are no downtrend counters in the top-10 tradable list. All the counters in the tradable list are likely to be under threat for Monday's trading. There are ample opportunities on the buy side for Monday's trading. The best is likely to be selling in Jet Airways. This counter is in uptrend. Bear move on Monday is likely to change the prevailing trend in this counter.

Cash Segment: The composition and the ranking of the top-10 tradable list had no changes. There are two uptrend counters and eight downtrend counters in the top-10 tradable list. All the uptrend counters in the list are likely to be under threat for Monday's trading. On the other hand, i-FlexSolutions is likely to be terminated. There is a lone opportunity on the buy side and ample opportunities on the sell side for Monday's trading. The best is likely to be selling in State Bank. This counter is in uptrend. 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.