The Hindu Business Line : Volatile movement

Bears dominated Friday's trading activity. 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.

NIFTY FUTURES

February contract opened with a bear gap of around 4 points from its previous close. The contract moved within a range of around 60 points making an intra-day low of 4168.10. It closed with a loss of around 42 points from its previous close.

The long position in the February contract exited and entered short. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during the normal course of trading during Monday.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. IDBI gave way to SBI. The short exit level for MTNL and IDBI are placed at 164.05 and 107.95, respectively. There are six downtrend counters and four uptrend counters in the top-10 tradable list. Except Reliance Capital, other uptrend counters are likely to be under threat for Monday's trading. On the other hand, the downtrend counters Tata Steel and SBI are likely to be terminated.

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There are two buying opportunities and three 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.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. The short exit level for Suzlon is placed at 1259.95.

There are seven downtrend counters and three uptrend counters in the top-10 tradable list. The downtrend counters Tata Steel, Reliance Industries, SBI and BHEL are likely to be under threat for Monday's trading.

On the other hand the uptrend counters Infosys and ICICI are likely to be terminated. There are four buying opportunities and two selling opportunities for Monday's trading. The best among them is likely to be selling in ICICI Bank. 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.