The Hindu Business Line : Volatile movement

Wednesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to mildly bearish. Bull move on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

NIFTY FUTURES

The July month contract opened with a bear gap of around 6 points from its previous close. The contract moved within a range of around 60 points and closed with a gain of 13 points from its previous close.

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The long position in the July contract is exited and it initiated a fresh downtrend. The short exit and long entry levels are near its last traded price. These levels are likely to be triggered during Thursday’s trading .

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. ACC and Reliance Capital interchanged their positions in the list. Reliance Industries, Tata Steel and Bank of India are in uptrend. SBI, IDBI, Reliance Capital, Century Textiles and ICICI Bank are in downtrend.

In the uptrend counters, Reliance Industries is under threat for Thursday’s trading. On the other hand, bull domination on Thursday is likely to terminate all the downtrend counters except IDBI. Buying opportunities are likely to exist in SBI, ACC, Reliance Capital, Century Textiles, Hindalco and ICICI Bank.

Selling opportunity is likely to exist in Reliance Industries. The best is likely to be buying in ICICI Bank. This counter is in downtrend. Bull move on Thursday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. ACC moved form third to first position in the list. SBI moved from first to fourth position in the list. Infosys moved one step higher in the list. Satyam and BHEL interchanged their position in the list. The long exit level form Tata Steel is placed at 651.40.

SAIL, Infosys and Reliance Industries are in uptrend. SBI, IDBI, Satyam, BHEL and TCS are in downtrend. In the uptrend counters, Infosys is under threat for Thursday’s trading. On the other hand, bull domination on Thursday is likely to terminate all the downtrend counters except IDBI.

The buying opportunities are likely to exist in ACC, SBI, Hindalco, Satyam, BHEL and TCS. The selling opportunity is likely to exist in Infosys. The best among the above is likely to be buying in TCS. This counter is in downtrend. B ull move on Thursday is likely to reverse the 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.