The Hindu Business Line : Volatile movement

Tuesday's trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters remains bullish. Bear move on Wednesday 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 around its previous close. The October month contract moved within a range of around 48 points making an intra-day high of 3,743. It closed with a loss of around 2 points from its previous close.

Click here for table

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 Wednesday.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Reliance Industries, Tata Steel and Satyam.

There are four uptrend counters and five downtrend counters in the top-10 tradable list. All the counters in the tradable list are likely to be under threat for Wednesday's trading. There are ample opportunities on the buy side and three opportunities on the sell side for Wednesday's trading. The best is likely to be buying in Bajaj Auto. This counter is in downtrend. Bull move on Wednesday 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 six uptrend counters and three downtrend counters in the top-10 tradable list. All the uptrend counters in the list are likely to be under threat for Wednesday's trading. Except HDFC the other two downtrend counters are likely to be terminated. There are three opportunities on the buy side and ample opportunities on the sell side for Wednesday's trading. The best is likely to be buying in Tata Steel. This counter is in downtrend. Bull move on Wednesday is likely to change 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.