The Hindu Business Line : Volatile movement

Thursday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to sidewise. Bear move on Friday has the potential to change the sentiment reading in their favour. On the contrary, bull move on Friday has the potential to change the sentiment reading in their favour.

NIFTY FUTURES

The April contract opened with a bear gap of around 16 points but unable to sustain its initial momentum, bulls succumbed to bear pressure. It moved within a range of around 65 points with making an intraday high of 4,177 and closed with a gain of around 7 points from its previous close.

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The long position on the April contract is exited due to the expiration. The new levels are placed based on May contract. The fresh long and short entry levels are placed quite faraway from its last traded price. These levels are unlikely to be trigger during Friday's trading activity.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. The top-3 tradable counters in this segment were Reliance, SBI and ICICI.

All the counters in the top-10 tradable list are in sideways due to the expiration of April contract. The new entry and exit levels are placed based on May contracts. There are five buying opportunities in the buy side. On the other hand, there are ample opportunities in sell side. The best is likely to be selling ACC. This counter is in sideways. Bear move on Friday is likely to trigger the sell level in this counter.

CASH SEGMENT

The composition of the top-10 tradable list has major changes. SBI, TCS, Tata Motors, ONGC and Zee Tele are gone out from the list and these are filled by ACC, Bajaj Auto, Bank of India, Andhra Bank and SAIL. The ranking of the top-10 tradable lists are totally revamped.

There are three uptrend and seven downtrend counters in the top ten tradable list. Three buying opportunities are likely to exist in Satyam, Infosys and SAIL. On the other hand lone selling opportunity exists in Reliance. Three downtrend counters and lone up trend counter are under threat for Friday. . The best is likely to be buying in Infosys. This counter is in downtrend. Bull move on Friday is likely to reverse the position 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.