The Hindu Business Line : Volatile movement

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

Nifty Futures: The May contract opened with a bull gap of around 31 points from its previous close. However, the initial bull momentum could not be sustained and gave way to bear. The May contract moved within a range of around 41 points, making an intra-day high of 4296 and closed with a loss of around 2 points from its previous close.

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The long position in the May contract is intact. The long exit and sell entry levels are placed 4 points from its last traded price. These levels are likely to be triggered during Tuesday's trading activity.

Stock Futures: The composition and the ranking of the top-10 tradable list had minor changes. ONGC went out from the top-10 tradable list and it is filled by ACC. ACC occupied ninth position and pushed Tata Motors to the last position. The long exit level for ONGC is placed at 901.35. The top-3 tradable counters in this segment were Infosys, Reliance Capital and Reliance.

Except Baja Auto and IDBI, all other counters in the list are in the uptrend.

All uptrend counters in the list are under threat for Tuesday. There are eight selling and buying opportunities likely to exist in the list. The best among the above is likely to be selling in Reliance. This counter is in uptrend. Bear move on Tuesday is likely to reverse the trend in this counter.

Cash Segment: The composition and the ranking of the top-10 tradable list had minor changes. ONGC went out from the top-10 tradable list and it is filled by SAIL. SAIL occupied ninth position and pushed Tata Motors to the last position.

All counters in the top-10 list are in the uptrend and under threat for Tuesday. Selling opportunity is likely to exist in all the counters in the list. The best candidate is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Tuesday is likely to reverse the 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.