The Hindu Business Line : Volatile movement

Monday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters turned bullish. Bear move on Tuesday has the potential to change the sentiment reading in its favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The April month contract opened with a bull gap of around 39 points but unable to sustain its initial momentum, bulls succumbed to bear pressure. The April month contract moved within a range of around 45 points. The April month contract closed around its previous close.

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The long position in the April month contract remains intact locking in a huge profit of 250 points. The long exit and short entry levels are placed one tick away from its last traded price. It is most likely to be triggered during Tuesday's trading activity.

STOCK FUTURES

The composition and ranking of the top-10 tradable list has minor changes. BankofIndia moved out of the top 10 tradable list giving way to BHEL. CenturyTex moved to sixth position followed by ACC and TCS. The top-3 tradable counters in this segment were, Tata Steel, Reliance and SBI. Short exit level for Bank of India is 192.35.

Most of the top 10 tradable counters in the list are in the uptrend. Except TISCO, all the counters in the list are under threat. Three buying and six selling opportunities exists for Tuesday's trading. The best is likely to be selling in Reliance Capital. This counter is in uptrend. Bear move on Tuesday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

There are some changes in the composition and ranking of the top-10 tradable list. ITC made its way to the top 10 tradable list pushing out SAIL. BHEL moved to sixth position. Tata Motors, SBI and ONGC moved one step ahead.

Except three, all the counters in the list are in uptrend. Almost all the counters in the list are under threat for Tuesday's trading. There are two opportunities on buying side and five on selling side for Tuesday. The best candidate is likely to be selling in Infosys. This counter is in uptrend. Bear move on Tuesday has a potential to change 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.