The Hindu Business Line : Volatile movement

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

NIFTY FUTURES: The November month contract opened with a bear gap of around 5 points from its previous close. The contract in a range of around 93 points andclosed with a gain of around 40 points. The long position in the Nifty November contract is intact. The long exit and short entry levels are placed quite far away from its last traded price.

STOCK FUTURES: The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Except Reliance Energy and IDBI all other uptrend counters are likely to be under threat for Thursday’s trading. Buying opportunities are likely to exist in SBI, BHEL and ICICI Bank. Selling opportunities are likely to exist in Reliance Capital, Reliance Industries, Tata Steel, Tata Power and NTPC. The best is likely to be buying in ICICI Bank. This counter is in downtrend. Bull domination on Thursday is likely to reverse the existing trend in this counter.

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CASH SEGMENT: The composition and the ranking of the top-10 list had minor changes. The uptrend counters Reliance Industries, Tata Steel and ONGC are likely to be under threat for Thursday’s trading. On the other hand, bull domination on Thursday is likely to terminate SAIL and SBI. Buying opportunities are likely to exist in SAIL and SBI. Selling opportunities are likely to exist in Reliance Industries, Tata Steel and ONGC. The best is likely to be selling in Reliance Industries. 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.