The Hindu Business Line : Volatile movement

Wednesday’s trading witnessed volatile movement. The sentiment reading of the tradable counters changed to bearish. Bull move on Thursday 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

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The November month contract opened with a bull gap of around 83 points from its previous close. The contract moved within a range of around 134 points and it closed with a loss of around 40 points from its previous close.

The Nifty November contract initiated a fresh downtrend. The short exit and long entry levels are placed quite far from its last traded price. These levels are unlikely to be triggered during Thursday’s trading activity.

STOCK FUTURES

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. NTPC and IDBI interchanged their positions.

ICICI Bank and BHEL interchanged their positions.

Except Reliance Industries, SBI and BHEL all other counters in the top-10 list are in downtrend. The uptrend counters Reliance Industries and BHEL are likely to be under threat for Thursday’s trading.

On the other hand, bull domination on Thursday is likely to terminate Reliance Capital, Tata Steel, NTPC and IDBI. Buying opportunities are likely to exist in Reliance Capital, Tata Steel, NTPC and IDBI.

Selling opportunities are likely to exist in Reliance Industries and BHEL. The best is likely to be buying in NTPC.

This counter is in downtrend. Bull move on Thursday is likely to reverse the existing trend in this counter.

CASH SEGMENT

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

Except Reliance Industries, SBI and BHEL all other counters in the top-10 list are in downtrend.

The uptrend counter Reliance Industries is likely to be under threat for Thursday’s trading. On the other hand, bull domination on Thursday is likely to terminate Reliance Capital and Tata Steel.

Buying opportunities are likely to exist in Reliance Capital and Tata Steel. A lone selling opportunity is likely to exist in Reliance Industries. The best candidate is buying in Reliance Capital.

This counter is in downtrend. Bull domination on Thursday is likely to reverse the 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.