The Hindu Business Line : Volatile movement

Monday's trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters remains bullish. Bear move on Tuesday is likely to change the sentiment reading to bearish.

NIFTY FUTURES

The November contract opened with a bear gap of around six points from its previous close. The November contract moved within a range of around 23 points making an intra day high of 3,829. It closed with a gain of around two points from its previous close. The long position in the November contract remained intact and has locked in a profit of 70 points. The long exit and short entry levels are placed quite far away from its last traded price.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Tata Motors gave way to Hindustan Lever. HLL occupied ninth position while SRF and Bank of India moved down and occupied fifth and sixth position respectively. Tata Steel and Reliance Capital moved up and occupied third and fourth position respectively. The exit levels for Satyam and Tata Motors are placed at 429 and 826.95 respectively.

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All the counters in the top-10 tradable list are in uptrend. The uptrend counters Tata Steel, Reliance Capital and SRF are likely to be under threat for Tuesday's trading. There are four opportunities on sell side for Tuesday's trading. The best is likely to be selling in SRF. This counter is in up trend. Bear move on Tuesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. The exit levels for TCS, Reliance Capital and L&T are placed at 1,069.95, 593.25 and 1,337.95 respectively. There are six uptrend counters and four down trend counters in the list. Except Reliance Industries and VSNL, other uptrend counters are likely to be under threat on Tuesda. On the other hand, the downtrend counters - Satyam, Infosys and Tata Motors - are likely to be terminated. There are three buying opportunities and four selling opportunities for Tuesday's trading. The best is likely to be selling in Suzlon. This counter is in uptrend. Bear move on Tuesday is likely to reverse the prevailing trend.

(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.