The Hindu Business Line : Volatile movement

Tuesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear move on Wednesday is likely to change the sentiment reading in their favour.

On the contrary, current sentiment reading is likely to be further strengthened with additional counters.

Nifty futures

The October month contract opened around the same level as the previous close. The October month contract moved within a range of around 130 points. The October month contract closed with a loss of around 19 points from its previous close.

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The long position in the October month contract remains intact. 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 Wednesday’s trading.

Stock futures

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Tata Power moved from eighth to sixth position in the list. NTPC and IDBI moved one step lower in the list.

Except IDBI and Infosys all other counters in the top-10 list are in uptrend. The uptrend counters Reliance Industries, Tata Steel and SBI are likely to be under threat for Wednesday’s trading.

There are no buying opportunities for Wednesday’s trading. Selling opportunities are likely to exist in Reliance Industries, Tata Steel and SBI. The best among the above is likely to be selling in Reliance Industries.

This counter is in uptrend. Bear move on Wednesday is likely to reverse the prevailing trend in this counter.

Cash segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Tata Power moved from sixth to fourth position in the list.

Infosys and SAIL moved one step lower in the list. The short exit level of IDBI and long exit level of BHEL are placed at 149.95 and 2225.95 respectively.

Infosys is the lone downtrend counter in the top-10 tradable list. All other counters in the top-10 tradable list are in uptrend.

The uptrend counters Reliance Industries and SBI are likely to be under threat for Wednesday’s trading.

There are no buying opportunities for Wednesday’s trading. Selling opportunities are likely to exist in Reliance Industries and SBI.

The best is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Wednesday is likely to reverse the existing position 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.