The Hindu Business Line : Volatile movement

Monday's trading activity witnessed volatile movement. However, the sentiment reading remains bearish. Bull move on Tuesday is likely to change the sentiment reading in its favour.

Nifty Futures

The March contract opened with a bear gap of around 13 points from its previous close. However, the bears could not capitalise on their initial momentum and gave way to bulls during the latter part of the trading. It moved within a range of around 119 points, clocking an intra-day high of 3,970 and closed with a gain of around 35 points from its previous close.

The short position in the March 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 Tuesday's trading.

Stock futures

The composition and ranking of the top 10 tradable list had minor changes. The short exit level for VSNL is placed at Rs 401.75.

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There are seven downtrend counters and three uptrend counters in the tradable list. Except IDBI, other downtrend counters are likely to be under threat on Tuesday. On the other hand, the uptrend counter, Tata Steel, is likely to be terminated. There are ample buying opportunities and a lone selling opportunity for Tuesday.

The best among them is likely to be buying in Hindalco. This counter is in downtrend. Bull move on Tuesday 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 Satyam and Bajaj Auto is placed at Rs 468.95 and Rs 2,903.05 respectively. The long exit level for ACC is placed at Rs 909.85. There are seven downtrend counters and two uptrend counters in the top 10 tradable list. Except Zee, other downtrend counters are likely to be under threat on Tuesday. On the other hand, the uptrend in Andhra Bank is likely to be terminated. There are ample buying opportunities and a lone selling opportunity for Tuesday.

The best among them is likely to be buying in SBI. This counter is in downtrend. Bull move on Tuesday 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.