The Hindu Business Line : Volatile movement

Monday's trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters continued to remain bullish. Bear move on Tuesday 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 December month contract gapped up by around seven points and further went up by another five points. However, bulls could not sustain their initial momentum and gave way for bears to regain. The December month contract moved within a range of around 23 points making an intraday low of 3,996.00. The December month contract closed with a loss of around three points from its previous close.

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The long position in the December month contract remained intact. The long exit and short entry levels are placed quite nearer to its last traded price. Bear move on Tuesday is likely to reverse the prevailing trend in December month contract.

STOCK FUTURES

The composition of the top-10 tradable counters remained unchanged. However, ranking of the list had total revamp. Acc occupied second rank while Reliance moved down to fifth rank in the top-10 list. The top-three tradable counters in this segment were GMR Infra, Tata Motors and IVRCL. Except ACC & SBIN, all the uptrend counters in the list are under threat for Tuesday's trading. On the other hand, the lone downtrend counter ICICI Bank is likely to be terminated. There are three bullish and five bearish opportunities for Tuesday's trading. The best bet is likely to be selling in Bank of India. Bear move on Tuesday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the list had a minor change. Tata steel gained entry with the exit of SAIL. The ranking of the list had total revamp. SBIN occupied first position while Tata steel occupied the last position in the top-10 list.

Bear move on Tuesday is likely to terminate uptrend in Bank of India, Reliance Industries and Tata steel. On the contrary, downtrend in Satyam is likely to be terminated. There are three buying opportunities and five selling opportunities for Tuesday's trading. The best is likely to be buying in Infosys. This counter is in sideways mode. Bull move on Tuesday is likely to initiate fresh uptrend in Infosys.

(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.