The Hindu Business Line : Volatile movement

Wednesday’s trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters remains bullish. Bear move on Thursday is likely to change the sentiment reading in their favour.

On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty Futures

The July month contract opened with a bull gap of around six points from its previous close. It moved within a range of around 30 points andclosed with a gain of around one point from its previous close.

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The long position in the July month nifty futures contract remains intact. The long exit and short entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Thursday’s trading activity.

Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. ACC moved up from eighth to sixth position in the list. The short exit level for ONGC is placed at 8 80.45.

Except Reliance Capital, Satyam and Hindalco all other counters in the top-10 tradable list are in uptrend. In the uptrend counters, Reliance Industries and ICICI Bank are likely to be under threat for Thursday’s trading. On t he other hand, bull domination on Thursday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in Reliance Capital, Satyam and Hindalco. Selling opportunities are likely to exist in Reliance Industries and ICICI Bank. The best is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Thursday is likely to reverse the existing trend in this counter.

Cash segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had total revamp. ACC moved up from sixth to second position in the list. Reliance Industries, IDBI, Tata Steel and SAIL moved one step down in the list. Except Infosys all other counters in the list are in uptrend. Except ACC, IDBI and BHEL all other uptrend counters are likely to be under threat for Thursday’s trading. On the other hand, bull domination on Thursday is likely to terminate Infosys in the list. Buying opportunities are likely to exist in Infosys. Selling opportunities are likely to exist in SBI, Reliance Industries, Tata Steel, SAIL, Satyam and Tata Motors. The best among the above is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Thursday 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.