The Hindu Business Line : Volatile movement

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

NIFTY FUTURES

The June contract opened with a bull gap of around 28 points from its previous close. It moved within a range of around 37 points, making an intra-day high of 4314 and closed with a gain of around 10 points from its previous close.

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The side position in the June contract is intact. The short entry level is placed 10 points away from current levels and long entry level is placed far away from its last traded price. The short entry level is likely to be triggered and the long entry level is unlikely to be triggered during Monday's trading activity.

STOCK FUTURES

The composition and ranking of the top-10 tradable list has minor changes. Reliance and BHEL exited the top-10 tradable list and the position is filled by ONGC and Satyam. ONGC and Satyam occupied ninth and last position in the list. Century Textiles and IDBI interchanged their positions. The top-3 tradable counters in this segment were SBI, Reliance Capital and Reliance.

Except Bajaj Auto and ONGC, all the counters in the top-10 tradable list are in uptrend. All the uptrend counters in the list are under threat for Monday. Two buying and eight selling opportunities are likely to exist in the list.

The best candidate is to sell in ONGC. Bear move on Monday is likely to initiate a fresh downtrend in this counter.

CASH SEGMENT

The composition ranking of the top-10 tradable list has no changes. However the ranking of the list had minor changes. SBI and Tata Steel interchanged their position.

Except Tata Steel and SAIL all the counters in the top-10 tradable list are in uptrend. All the uptrend counters are under threat for Monday's trading. There are two buying and eight selling opportunities likely to exist in the list.

The best among these is likely to be selling in Reliance. This counter is in uptrend. Bear move on Monday is likely to turn the existing 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.