The Hindu Business Line : Volatile movement

Friday's trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters changed to bearish. Bull move on Monday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The January month contract opened with a bull gap of around 19 points from its previous close. It moved within a range of around 80 points making an intra-day low of 4060.35. The contract closed with a loss of around 17 points from its previous close. The long position in the January contract exited and entered short. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during trading on Monday.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. SBI, Tata Steel and Tata Motors moved down in the ranking while ICICI, Satyam and MTNL moved up. There are six downtrend and three uptrend counters in the top-10 tradable list. Except Satyam, other downtrend counters are likely to be under threat for Monday's trading. There are six buying opportunities and a lone selling opportunity for Monday's trading. The best among them is likely to be buying in ICICI. This counter is in sideway's mode. Bull move on Monday is likely to initiate a fresh uptrend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. The long exit level for Zee Tele is placed at 284.95.

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There are seven downtrend counters and a lone uptrend counter in the list. Three downtrend counters ICICI Bank, TCS and BHEL are likely to be under threat for Monday's trading.

On the other hand, the lone uptrend counter Reliance Industries is likely to be terminated.

There are five buying and two selling opportunities for Monday's trading. The best among them is likely to be selling in Reliance Industries. This counter is in uptrend. Bear 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.