The Hindu Business Line : Volatile movement

Wednesday’s trading activity witnessed volatile 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.

NIFTY FUTURES

The September contract opened with a bull gap of around 8 points from its previous close. The contract moved within a range of around 60 points and .closed with a loss of around 26 points from its previous close.

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

STOCK FUTURES

The composition and ranking of the top-10 tradable list had no changes. The long exit level for Infosys is placed at 1884.45.

Except Reliance Capital and SBI all other counters are in uptrend. The uptrend in Reliance Industries, ICICI Bank, Century Textiles and BHEL are likely to be under threat for Thursday’s trading. On the other hand, bull domination on Thursday is likely to terminate SBI. Buying opportunities are likely to exist in Reliance Capital and SBI. Selling opportunities are likely to exist in Reliance Industries, Reliance Capital, ICICI Bank, Century Textiles and BHEL. The best among the above is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Thursday is likely to reverse the prevailing 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. IDBI and Infosys interchanged their positions.

Except SBI and Satyam all other counters in the list are in uptrend. In the uptrend counters Reliance Industries, ICICI Bank, Infosys, Reliance Energy and BHEL are likely to be under threat for Thursday’s trading. On the other hand, bull domination on Thursday is likely to terminate Satyam. Buying opportunities are likely to exist in SBI and Satyam. Selling opportunities are likely to exist in Reliance Industries, ICICI Bank, SBI, Infosys, Reliance Energy and BHEL.

The best among the above is likely to be selling in Infosys. This counter is in uptrend. Bear move on Thursday 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.