The Hindu Business Line : Volatile movement

Friday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bearish. Bull move on Monday is likely to change the sentiment reading in its favour.

NIFTY FUTURES

January contract opened with a bear gap of around 6 points from its previous close. It moved within a range of around 49 points, making an intra-day low of 3958. The contract closed with a loss of around 7 points from its previous close.

The short position in the January month contract remains intact. The short exit and long 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 Monday's trading.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. ONGC gave way to Satyam. ACC and Tata Motors interchanged their positions. There are each five uptrend and downtrend counters in the list. There are two uptrend counters in the list are likely to be under threat for Monday's trading. On the other hand, all the downtrend counters are likely to be terminated. There are five opportunities on the buy side and two on the sell side for Monday's trading.

The best among them is likely to be buying in Tata Steel. This counter is in downtrend. Bull move on Monday 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. Reliance Industries and Zee Tele interchanged their positions.

Most of the counters in the top-10 tradable list are in downtrend. All the downtrend counters in the list are likely to be under threat for Monday's trading. There are ample opportunities on the buy side and a lone opportunity on the sell side for Monday's trading. The best among them is likely to be buying in BHEL. This counter is in downtrend. Bull move on Monday is likely to reverse the prevailing 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