The Hindu Business Line : Volatile movement

Wednesday's trading activity witnessed a volatile movement. The sentiment reading of the tradable counters remains marginally bearish. Bull move on Thursday 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 around its previous close. The contract moved within a range of around 35 points making an intraday high of 4104. It closed with a gain of around 25 points from its previous close.

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The short position in the January contract remains intact. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during trading on Thursday.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. MTNL and Tata Motors interchanged their position.

There are seven downtrend counters and three uptrend counters in the top-10 tradable list. Except Century Tex, Satyam and Tata Motors, other downtrend counters are likely to be under threat for Thursday's trading. On the other hand, the uptrend counter ICICI Bank is likely to be terminated.

There are four buying opportunities and a lone selling opportunity for Thursday's trading. The best among them is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Thursday is likely to reverse the prevailing trend 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 312.95.

There are three downtrend counters and four uptrend counters in the top-10 tradable list. Except SAIL, other uptrend counters are likely to be under threat for Thursday's trading. On the other hand, all the downtrend counters are likely to be terminated. There are six buying and five selling opportunities for Thursday's trading. The best among them is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Thursday 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.