The Hindu Business Line : Volatile movement

Monday’s trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters changed to bearish. Bull move on Tuesday is likely to change the sentiment reading in its favour. On the contrary, the prevailing bearish sentiment is likely to continue undisturbed.

NIFTY FUTURES

The September month contract opened with a bear gap of around 39 points from its previous close. However, bear were not able to sustain their initial momentum and gave way to bull pressure. The September month contract moved within a range of around 78 points. The September month contract closed with a gain of around 22 points from its previous close.

The long position in the September month contract is exited and initiated a fresh downtrend. The short exit and long entry levels are placed nearer to its last traded price. Bull domination on Tuesday is likely to reverse the prevailing trend in Nifty September month contract.

STOCK FUTURES

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The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. IDBI and Reliance Capital interchanged their positions. The long exit level for NTPC is placed at 182.45.

Except Reliance Industries, IDBI, Reliance Energy and BHEL, all other counters in the list are in the downtrend. The uptrend counter BHEL is likely to be under threat for Tuesday’s trading. On the other hand, bull domination on Tuesday is likely to terminate all the downtrend counters. Buying opportunities are likely in all the downtrend and sideways counters. Selling opportunities are likely in Reliance Industries and BHEL. The best among the above is likely to be buying in SBI. This counter is in downtrend. Bull move on Tuesday 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. SBI and ICICI Bank interchanged their positions. IDBI and Reliance Capital interchanged their positions. The short exit level for Satyam is placed at 452.45.

Except Reliance Industries and IDBI, all other counters in the list are in downtrend. Bull domination on Tuesday is likely to terminate all the downtrend counters. There are ample number of buying opportunities for Tuesday’s trading. Selling opportunity is likely in Reliance Industries. The best among the above is likely to be buying in SAIL. This counter is in downtrend. Bull move on Tuesday is likely to trigger the long position in SAIL.

(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.