The Hindu Business Line : Volatile movement

Today's market witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear move on Monday has the potential to change the sentiment reading to bearish. 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 18 points from its previous close. However, the initial momentum was not sustained and gave way to bear. It moved within a range of around 68 points and closed with a loss of around 28 points from its previous close.

The short position in the June month contract remains intact. The long exit and short entry levels are placed very near to its last traded price. These levels are likely to be triggered during Monday's trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. Bajaj Auto went out from the top-10 list and it is replaced by ICICI Bank. Tata Motors moved to ninth position. Tata Steel, Reliance and Satyam are the down trends in the top-10 list. Except ICICI Bank all other counters in the top-10 tradable list are in uptrend.

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Except Tata Steel all the counters in the list are under threat for Monday. Buying opportunities are likely to exist in Reliance, Satyam and ICICI. On the other hand, ample opportunities are there in sell side.

The best among the above is likely to be selling in Tata Motors. This counter is in up trend. Bear move on Monday has the potential to change the prevailing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. Bajaj Auto gone out from the top-10 list and gave way to Hindalco. Satyam and Tata Motors moved one position ahead on top-10 list.

There are seven uptrend counters and three down trend counters in the list. Down trend counters are Reliance, Satyam and Hindalco. Except Infosys, SAIL and Satyam all the counters are under threat for Monday's trading. Ample selling opportunities exist in sell side. On the other hand, lone buying opportunity exists in Reliance.

The best is likely to be selling in IDBI. This counter is in up trend. Bear 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.