The Hindu Business Line : Volatile movement

Tuesday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bearish. Bull move on Wednesday is likely to change the sentiment reading in its favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The March contract opened with a bull gap of around 41 points from its previous close. It moved within a range of around 115 points making an intra-day high of 3664. The contract closed with a gain of around 95 points from its previous close.

The short position in the March contract remains intact and has a locked profit of around 380 points. The short exit and long entry levels are placed nearer to its last traded price. These levels are likely to be triggered during Wednesday's trading.

Stock Futures

The composition and ranking of the top-10 tradable list had minor changes. The short exit level for Reliance Capital and Hindalco are placed at 597.55 and 137.30, respectively.

There are six downtrend counters and four uptrend counters in the top-10 tradable list. The uptrend counters ICICI and SBI are likely to be under threat for Wednesday's trading. On the other hand, the downtrend counter Bajaj Auto is likely to be terminated. There are two selling opportunities and a lone buying opportunity for Wednesday's trading. The best among them is likely to be buying in Bajaj Auto. This counter is in downtrend. Bull move on Wednesday 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. ICICI, Zee Tele and ACC moved up in the ranking while IDBI and Tata Steel moved down. The short exit level for SBI is placed at Rs 999.05.

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There are seven downtrend counters and three uptrend counters in the top-10 tradable list. The uptrend counter ICICI is likely to be under threat for Wednesday's trading. On the other hand, the downtrend counter ACC is likely to be terminated. There exists one opportunity on either side for Wednesday's trading.

The best among them is likely to be buying in ACC. This counter is in downtrend. Bull 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