The Hindu Business Line : Volatility sustains

The market witnessed volatile movement during Monday's trading. The sentiment reading of the tradable counters continues to remain bearish. Bull move on Tuesday has the potential to neutralise the sentiment reading. 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 bull gap of around 14 points and further went up by 45 points, clocking an intra-day high of 4,181.65.

During the later part of trading, bulls were not able to sustain momentum and succumbed to bear pressure. The contract closed with a marginal gain of 10 points from its previous close.

The short position in the contract is intact with a locked profit of 95 points. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Tuesday's trading activity.

Stock futures

There is no change in the composition of the top 10 tradable list. The ranking saw minor changes with Bajaj Auto and IDBI occupying fifth and sixth positions. Satyam Computer and ICICI Bank interchanged their rankings.

Except Satyam, all counters in the list are in downtrend.

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Buying opportunities are likely to exist in Reliance Capital, SBI, Reliance, Bajaj Auto, Century Textiles and ICICI Bank. Satyam is likely to be the lone opportunity on the sell side.

The best among the above is likely to be buying in Reliance. This counter is in downtrend. Bull move on Tuesday has the potential to reverse the prevailing trend in this counter.

Cash Segment

The composition and the ranking of the top 10 tradable list saw minor changes. SAIL made its way to the list, pushing out ICICI Bank. It occupies sixth position.

Except Reliance, Satyam and Infosys, all other counters in the list are in downtrend.

Selling opportunities exist in Reliance, Infosys and Satyam.

The best is likely to be selling in Reliance. This counter is in uptrend. Bear move on Tuesday 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.