The Hindu Business Line : Volatile movement

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

NIFTY FUTURES

The August month contract opened with a bull gap of around 72 points from its previous close. The August month contract moved within a range of around 164 points. The August month contract closed with a loss of around 33 points from its previous close.

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Bull domination during the day initiated a fresh uptrend in the August month Nifty futures contract. The long exit and short entry levels are placed away from its last traded price. These levels are unlikely to be triggered during Friday’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. SBI and Reliance Industries interchanged their positions. IDBI and Tata Steel interchanged their positions.

Except SBI and IDBI all other counters in the list are in uptrend. All the uptrend counters are under threat for Friday’s trading. There are no buying opportunities in the list. Selling opportunities are likely to exist in all the uptrend counters and IDBI. The best among the above is likely to be selling in ICICI Bank. This counter is in uptrend. Bear domination during Friday 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 BHEL interchanged their positions.

Except SBI and IDBI all other counters in the list are in uptrend. All the uptrend counters are under threat for Friday’s trading. There are no buying opportunities for Friday’s trading. Selling opportunities are likely to exist in all the uptrend counters and IDBI. The best among the above is likely to be selling in ICICI Bank. This counter is in uptrend. Bear move on Friday is likely to reverse the prevailing 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.