The Hindu Business Line : Sideways movement

Tuesday’s trading activity witnessed sideways 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 strengthened with additional counters.

Nifty Futures

The August month contract opened with a bear gap of around eight points from its previous close. The August month contract moved within a range of around 32 points. The August month contract closed with a loss of around nine points from its previous close.

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

Stock Futures

The composition and the ranking of the top-10 tradable list had no changes.

Except Reliance Capital, ACC, BHEL and Century Textiles, all other counters in the list are in uptrend. All the uptrend counters are likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in Reliance Capital, ACC, BHEL and Century Textiles. Selling opportunities are likely to exist in Reliance Industries, SBI, Relianc e Energy, IDBI, Tata Steel and ICICI Bank. The best among them is likely to be selling in ICICI Bank. 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 tradable list had no changes. However, the ranking of the top-10 list had minor changes. ICICI Bank and ITC interchanged their positions in the list.

SBI, Reliance Energy, Infosys, IDBI and ICICI Bank are in uptrend in the list. Reliance Capital, BHEL, ITC and HDFC are in downtrend. All the uptrend counters are under threat for Thursday’s trading.

On the other hand, bull domination on Thursday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in Reliance Industries, Reliance Capital, BHEL, ITC and HDFC. Selling opportunities are likely to exist in Reliance Industries, SBI, Reliance Energy, Infosys, IDBI and ICICI Bank.

The best among the above is likely to be selling in Reliance Energy. 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.