The Hindu Business Line : Volatile movement

Friday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bearish. Bull move on Monday 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 bear gap of around 64 points from its previous close. The contract moved within a range of around 148 points and it closed with a loss of around 11 points from its previous close.

The Nifty November Month contract entered fresh downtrend during the day’s trading. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Monday’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. ICICI Bank and Tata Steel interchanged their positions. The long exit level for Tata Power is placed at 1218.05.

Reliance Energy, SBI, BHEL, ICICI Bank and Tata Steel are in downtrend in the top-10 list. Reliance Capital, NTPC and IDBI are in uptrend in the top-10 list. The uptrend counter Reliance Capital is likely to be under threat for Monday’s trading.

On the other hand, bull move on Monday is likely to terminate all the downtrend counters except Reliance Energy. Buying opportunities are likely to exist in Reliance Industries, SBI, BHEL, ICICI Bank, Tata Steel and Bank of India. Selling opportunities are likely to exist in Reliance Capital, Reliance Industries and Bank of India. The best is likely to be buying in SBI. This counter is in downtrend. Bull move on Monday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. Infosys and ONGC made their ways to top-10 list pushing out IDBI and Tata Power. Infosys occupied eighth position in the list. ONGC occupied last position in the list. HDFC moved one step lower in the list. SAIL and BHEL interchanged their positions. The long exit level for Tata Steel is placed at Rs 860.05. The short exit level for Tata Power is placed at Rs 1,279.05.

Except Reliance Industries and Reliance Capital all other counters in the list are in downtrend. Bull domination on Monday is likely to terminate all the downtrend counters except Reliance energy.

Buying opportunities are likely to exist in Reliance Industries, ICICI Bank, SBI, SAIL, BHEL, Infosys, HDFC and ONGC. A lone selling opportunity is likely to exist in Reliance Industries.

The best is likely to be buying in SBI. This counter is in downtrend. Bull move on Monday 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.