The Hindu Business Line : Volatile movement

Tuesday’s trading witnessed volatile movement. However, 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, the current sentiment reading is likely to be strengthened with additional counters.

NIFTY FUTURES

The November month contract opened with a bull gap of around 39 points from its previous close. The contract moved within a range of around 195 points. The contract closed with a loss of around 23 points from its previous close.

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The short position in the Nifty November Month contract is neutralised. The entry levels are placed quite far from its last traded price.

These levels are unlikely to be triggered during Wednesday’s trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 list had no changes. Except Reliance Capital, Tata Steel, IDBI and ICICI Bank all other counters in the top-10 list are in uptrend.

Except SBI and Tata Power all other uptrend counters are likely to be under threat for Wednesday’s trading. On the other hand, bull domination on Wednesday is likely to terminate Tata Steel.

A lone buying opportunity is likely to exist in Tata Steel. Selling opportunities are likely to exist in Reliance Energy, Reliance Industries, NTPC and BHEL.

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

CASH SEGMENT

The composition and the ranking of the top-10 list had no changes.

Reliance Energy, Reliance Industries, Tata Power, BHEL and ONGC are in uptrend in the top-10 list. Reliance Capital, ICICI Bank, SBI and Tata Steel are in downtrend. Except Tata Power all other uptrend counters 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 Energy, Reliance Industries, SAIL, BHEL and ONGC.

The best candidate is selling in SAIL. This counter is in sideways mode.

Bear domination on Wednesday is likely to initiate a fresh downtrend 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.