The Hindu Business Line : Volatile movement

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

NIFTY FUTURES

The June contract opened with a bear gap of around 22 points from its previous close. It moved within a range of around 74 points, making an intra-day high of 4213.90. The contract closed with a loss of around 16 points from its previous close. The short position in the June contract is intact. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Friday's trading activity.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Satyam made its way to the top-10 tradable list pushing out ONGC, and occupied ninth position, pushing Tata Motors one step down in the ranking. The short exit level of ONGC is placed at 881.15. The top-3 tradable counters in this segment were SBI, Reliance and Reliance Capital.

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Except Satyam, all other counters in the top-10 tradable list are in downtrend. There are nine buying opportunities likely to exist in the list. The best candidate is to buying in Reliance Capital. This counter is in downtrend. Bull move on Friday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. Satyam made its way to the top-10 tradable list pushing out BHEL, and occupied ninth position, pushing ICICI one step down in the ranking.

Except Satyam and IDBI, all other counters in the top-10 tradable list are in downtrend. In the list, IDBI is under threat for Friday's trading. There are four buying and one selling opportunities are likely to exist in the list. The best among these is likely to be buying in Infosys. This counter is in downtrend. Bull move on Friday is likely to reverse 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.