The Hindu Business Line : Volatile movement

Thursday's trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters remains bullish. Bear move on Friday is likely to change the sentiment in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty Futures: The July contract opened with a bull gap of around 10 points from its previous close. However, the bulls were not able sustain their initial momentum and gave way to bears to regain their initial losses. The contract moved within a range of around 61 points, and closed around the same level as its previous close.

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The long position remains undisturbed. The long exit and short entry levels are placed quite far away from last traded price. These levels are unlikely to be triggered during Friday's trading activity.

Stock Futures: The composition and the ranking of the top 10 tradable list had minor changes. Bank of India made its way to top 10 list pushing out Satyam. Bank of India occupied last position in the list.

Reliance Industries and Tata Steel interchanged positions. ICICI Bank and Hindalco moved one step higher in the list. The short exit levels for ONGC and Satyam are placed at 877.65 and 471.55 respectively.

Except Reliance Capital, Reliance Industries, Hindalco and Bank of India, all other counters in the top 10 tradable list are in uptrend. In the uptrend counters, SBI and Tata Steel 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 Reliance Capital, Reliance Industries, Hindalco and Bank of India for Friday's trading. Selling opportunities are likely to exist in SBI and Tata Steel.

The best is likely to be buying in Reliance Capital. This counter is in sideways. Bull move on Friday is likely to initiate fresh uptrend in this counter.

Cash Segment: The composition of the top 10 list had no changes. However, the ranking of the top 10 list had minor changes. Satyam and BHEL interchanged positions. Except Reliance Industries, Infosys and Satyam, all other counters in the list are in uptrend.

Except ACC and IDBI, all other uptrend counters are likely to be under threat for Friday's trading. On the 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 Industries, Infosys and Satyam.

Selling opportunities are likely to exist in SBI, Tata Steel, SAIL, BHEL and Tata Motors. The best among the above is likely to be buying in Reliance Industries. 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