The Hindu Business Line : Sideways movement

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

NIFTY FUTURES

The November month contract opened with a bull gap of around 13 points from its previous close. The November contract moved within a range of around 27 points making an intraday high of 3959.70. The November contract closed with a gain of around 6 points from its previous close.

The short position in the November contract exited and entered long. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during trading on Thursday. Due to expiry, the open position has to be allowed to expire.

STOCK FUTURES

The composition of the top-10 tradable counters had no changes. However, the ranking had minor changes. Reliance Capital and Reliance Industries moved down while SBIN, Centex and ACC moved up in the ranking. The top-3 tradable counters in this segment were IVRCL, SBIN and Reliance Industries.

Except SBIN and ACC, the other uptrend counters are likely to be under threat for Thursday's trading. On the contrary all the downtrend counters are likely to be terminated. There are three opportunities on the bull side and five opportunities on the bear side for Thursday's trading. The best bet is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Thursday has a potential to trigger the short entry level in this counter. Thursday being the expiry day, all open positions has to be allowed to expire.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. ACC moved up and occupied second position while Reliance moved down and occupied third position in the ranking.

Except ACC, the other uptrend counters in the top-10 tradable list are likely to be under threat for Thursday's trading. On the other hand, the two downtrend counters are likely to be terminated. There are three opportunities on the buy side and ample opportunities on the sell side for Thursday's trading. The best is likely to be selling in ZEE TELE. This counter is in uptrend. Bear move on Thursday 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.