The Hindu Business Line : Sideways movement

Thursday’s trading witnessed sideways movement. The sentiment reading of the tradable counters stands neutral. Bull move on Friday is likely to change the sentiment reading in their favour. On the contrary, sentiment reading is likely to turn bearish.

nifty futures

The June month contract opened with a bull gap of around 12 points from its previous close. It moved within a range of around 30 points and closed with a loss of around 7 points from its previous close.

The short position in June futures exited due to expiry. The fresh entry levels are given in the July contracts. The long entry level is placed quite nearer to its last traded price. Bull move on Friday is likely to trigger the uptrend in the July month Nifty contract.

Stock Futures

The composition of the top-10 tradable list had a minor change. However, the ranking of the list had no changes. ACC and ONGC made their ways to top-10 list pushing out Tata Motors and ICICI Bank.

All the counters in the top-10 tradable list are in sideways due to the expiration of June contracts. The new entry and exit levels are given in the July contracts. Buying opportunities are likely to exist in all the counters in the list. On the other hand, selling opportunities are likely to exist in all the counters in the list except IDBI and ACC.

The best is likely to be buying in ACC. This counter is in sideways. Bull move on Friday is likely to trigger the uptrend in this counter

Cash Segment

The composition and the ranking of the top-10 list had minor changes. ACC made its way to top-10 list pushing out Hindalco. ACC occupied ninth position and pushed BHEL to last position. SAIL and Infosys interchanged their positions. Tata Motors occupied eighth rank while Satyam moved to seventh position in the list.

SBI, IDBI, Satyam and ACC are in uptrend among the top-10 list. Reliance Industries, Tata Steel, SAIL and Tata Motors are in downtrend. In the uptrend counters SBI and Satyam are likely to be under threat for Friday’s trading. On the other hand, bull domination on Friday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in the Reliance Industries, Tata Steel, SAIL, Infosys, Tata Motors and BHEL. The selling opportunities are likely to exist in SBI, Infosys and Satyam.

The best among the above is likely to be buying in SAIL. This counter is in downtrend. Bull move on Friday is likely to reverse the existing trend 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.