The Hindu Business Line : Volatile movement

Tuesday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to marginally bullish. Bear move on Wednesday 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 February month contract opened with a bull gap of around 4 points from its previous close. However, the bulls could not capitalise on their initial momentum. The February month contract moved within a range of around 35 points making an intra-day high of 4216.95. The February month contract closed with a loss of around 14 points from its previous close.

The long position in the February month contract remains intact. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during the normal course of trading on Wednesday.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Tata Motors gave way to VSNL. VSNL occupied tenth position in the ranking. The top-3 tradable counters in this segment were Reliance Industries, IDBI and Reliance Capital. The long exit level for Tata Motors is placed at 910.45.

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There are five downtrend counters and five uptrend counters in the top-10 tradable list. Except VSNL, other downtrend counters are likely to be under threat for Wednesday's trading. On the other hand, the uptrend counters Tata Steel, Reliance Industries and Satyam are likely to be terminated. There are four buying opportunities and three selling opportunities for Wednesday's trading. The best among them is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Wednesday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. ONGC gave way to Suzlon. Suzlon occupied tenth position in the ranking. IDBI and Infosys interchanged their positions. The short exit level for ONGC is placed at 917.95.

There are eight downtrend counters and two uptrend counters in the top-10 tradable list. All the counters are likely to be under threat for Wednesday's trading. There are ample selling opportunities and two buying opportunities for Wednesday's trading. The best among them is likely to be selling in SBI. This counter is in uptrend. Bear move on Wednesday 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.