The Hindu Business Line : Volatile movement

Monday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bearish. Bull move on Tuesday is likely to change the sentiment in its favour.

Nifty Futures

The August month contract opened with a bull gap of around three points from its previous close. It moved within a range of around 95 points and closed with a gain of one point from its previous close.

The short position in the August Nifty futures contract is undisturbed. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Tuesday’s trading activity.

Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. Tata Steel and SBI interchanged their positions in the list.

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Reliance Industries, Reliance Capital, Tata Steel, ACC and Hindalco are in downtrend in the list. Reliance Energy, SBI, IDBI, ICICI Bank and Century Textiles are in uptrend in the list. The uptrend counters IDBI and ICICI Bank are under threat for Tuesday’s trading. On the other hand, bull domination on Tuesday is likely to terminate the downtrend in Reliance Industries. Buying opportunity is likely to exist in Reliance Industries. Selling opportunities are likely to exist in IDBI and ICICI Bank. The best among the above is likely to be selling in IDBI. This counter is in uptrend. Bear move on Tuesday is likely to reverse the existing trend in this counter.

Cash segment

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Capital and SAIL interchanged their positions in the list. Tata Steel and Satyam moved one step lower in the list.

Except Reliance Energy, ACC, SBI and ITC, all other counters in the top-10 list are in downtrend. The uptrend in Reliance Energy is under threat for Tuesday’s trading. On the other hand, bull domination on Tuesday is likely to terminate downtrend in Reliance Industries, Infosys and Satyam. Buying opportunities are likely to exist in Reliance Industries, Infosys and Satyam. Selling opportunities are likely to exist in Reliance Energy and ITC.

The best among the above is likely to be selling in ITC. This counter is in sideways. Bear move on Tuesday is likely to initiate a fresh downtrend 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.