The Hindu Business Line : Volatile movement

Thursday's market activity witnessed volatile movement. However, the sentiment reading continues to remain bearish. Bull move on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing sentiment is likely to be further strengthened.

NIFTY FUTURES

The November month contract opened with a bull gap of around 6 points from its previous close. However, they could not sustain their initial momentum and left way for bears to make a come back. During the later part of the day's trading, bulls recovered their losses and closed higher with a gain of around 14 points from the previous close.

The short position in the November month contract exited and went long. The long exit and short entry levels are placed quite far to its last traded price. These levels are unlikely to be triggered during Friday's trading activity.

STOCK FUTURES

The composition of the top-10 tradable counters had no changes. However, ranking of the list had a minor change. SRF and Bank of India interchanged their rankings. The top-3 tradable counters in this segment were Reliance Industries, Tata Steel and Hind Lever.

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Except Bank of India, all the uptrend counters in the list are likely to be under threat for Friday's trading. On the other hand, Reliance and Tata Motors are likely to be terminated. There are five buying opportunities and two selling opportunities for Friday's trading. The best is likely to be selling in SBI. This counter is in uptrend. Bear move on Friday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list remained unchanged. The ranking of the list underwent a minor change. Satyam moved up to sixth rank while Tata Steel moved down to seventh rank.

Bear move on Friday is likely to terminate all the uptrend counters in the list except Suzlon. On the contrary, Bajaj Auto is the lone downtrend counter which is likely to be safe for Friday's trading. There are five selling opportunities and three buying opportunities for Friday's trading. The best among the above is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Friday is likely to reverse the downtrend in Reliance Industries.

(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.