The Hindu Business Line : Volatile movement

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

Nifty Futures

The May contract opened with a bull gap of around 24 points from its previous close. It moved within a range of around 69 points making an intra-day high of 4142 but closed with a loss of around 19 points from its previous close.

The long position in Nifty futures has exited and a fresh downtrend has been initiated. The short exit and long entry levels are placed 51 points away from its last traded price. These levels are unlikely to be triggered during Tuesday's trading activity.

Stock Futures

The composition of the top-10 tradable list has minor changes. IDBI made its way to top 10 tradable lists pushing out TCS and occupied last position. There is no change in the ranking of other counters.

Click here for table

The top-3 tradable counters in this segment were Reliance, Tata Steel and ICICI. The long exit level for TCS is placed at 1260.70.

There are three uptrend and seven downtrend counters in the top-10 tradable list. The uptrend counters are under threat for Tuesday. Four buying and three selling opportunities may exist in the list.

The best among the above is likely to be selling in IDBI. This counter is in uptrend. Bear move on Tuesday is likely reverse the trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable counters has minor changes. ONGC made its way to top-10 tradable lists pushing out TCS and occupied last position. BHEL and Tata Motors interchanged their positions.

There are one uptrend and seven downtrend counters in the top-10 list. Reliance is under threat for Tuesday. There may be six buying and three selling opportunities. The best candidate to sell would be Reliance. This counter is in up trend. Bear move on Tuesday is likely to trigger the buy level 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.