The Hindu Business Line : Volatile pattern continues

Friday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bearish. Bull move on Monday 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 month contract opened with a bear gap of around 36 points from its previous close. The contract moved within a range of around 68 points making an intra-day high of 4174.95. It closed with a loss of around 37 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 Monday's trading activity.

STOCK FUTURES

The composition of the top-10 tradable list has no changes. However, the ranking of the top-10 tradable list had minor changes. Bajaj Auto and IDBI interchanged their positions. The short exit level of ONGC is placed at 877.50. The top-3 tradable counters in this segment were Reliance Capital, SBI and Reliance.

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Except Satyam, all other counters in the top-10 tradable list are in downtrend. There may be five buying opportunities in the list.

The best candidate to buy is ICICI Bank. This counter is in downtrend. Bull move on Monday is likely reverse the trend in this counter.

CASH SEGMENT

The composition and ranking of top-10 tradable list had minor changes. BHEL made its way to top-10 tradable list pushing out SAIL and occupied ninth position. The short exit level of SAIL is placed at 136.50.

Except Satyam and Infosys, all other counters in the top-10 tradable list are in downtrend. A lone uptrend counter Infosys is under threat for Monday's trading. Four buying and one selling opportunities exist in the list.

The best among these is likely to be buying ICICI Bank. This counter is in downtrend. Bull move on Monday 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.