The Hindu Business Line : Volatile movement

Thursday's trading activity witnessed a volatile movement. The sentiment reading of the tradable counters remains bullish. Bear move on Friday is likely to change the current sentiment. 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 10 points from its previous close. It moved within a range of around 45 points andwith a gain of around 15 points from its previous close.

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The long position in the Nifty futures June contract is intact. The long exit and short entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Friday's trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Steel and IDBI interchanged their positions. Century Textiles moved up from eighth to sixth position and pushed Satyam and Hindalco to one step down in the list.

Except Tata Steel, Satyam and Hindalco all other counters in the top-10 list are in uptrend. In the uptrend counters Reliance Industries, IDBI, Tata Motors and ICICI Bank are under threat for Friday's trading. Tata Steel and Satyam are under threat for Friday's trading in sell side. Selling opportunities are likely to exist in Reliance Industries, IDBI, Tata Motors and ICICI Bank. Buying opportunities are likely to exist in Tata Steel, Satyam and Hindalco.

The best among these is selling in Reliance Industries. This counter is in uptrend. Bear move on Friday is likely to reverse the current position in this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. The ranking of the top-10 tradable list had minor changes. Reliance and SBI interchange their position. Tata Steel and Infosys interchange their position.

Except Reliance Industries, Infosys, Satyam and Hindalco all other counters in the top-10 list are in uptrend. In the up trend counters Tata Steel, SAIL, IDBI and Tata Motors are under threat for Friday's trading. In the downtrend counters Reliance Industries and Infosys are under threat for Friday's trading.

Buying opportunities are likely to exist in the Reliance Industries, Infosys and Hindalco. The selling opportunities are likely to exist in Tata Steel, SAIL, IDBI and Tata Motors.

The best candidate is likely to be selling in Tata Steel. This counter is in uptrend. Bear 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.