The Hindu Business Line : Volatile movement

Monday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bullish. Bear move on Tuesday 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 six points from its previous close. The November month contract moved within a range of around 72 points. The November month contract closed with a gain of around five points from its previous close.

Nifty November month contract entered fresh uptrend during the day’s trading. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Tuesday’s trading activity.

Stock futures

The composition and the ranking of the top-10 list had minor changes. Andhra Bank made its way to the top-10 list pushing out Bank of India. Andhra Bank occupied fifth position in the list. NTPC, IDBI, BHEL, ICICI Bank and Tata Steel moved one step lower in the list. The long exit level for Tata Power is placed at 1242.95.

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Except Reliance Energy, Reliance Industries, Andhra Bank and ICICI Bank, all other counters in the top-10 list are in uptrend. The uptrend counter SBI, BHEL and Tata Steel are likely to be under threat for Tuesday’s trading. On the other hand, bull move on Tuesday is likely to terminate Reliance Energy and Andhra Bank. Buying opportunities are likely to exist in Reliance Energy, Reliance Industries and Andhra Bank. Selling opportunities are likely to exist in Reliance Industries, SBI, BHEL and Tata Steel. The best is likely to be selling in Reliance Industries. This counter is in sideways mode. Bear move on Tuesday is likely to initiate a fresh downtrend in this counter.

Cash segment

The composition and the ranking of the top-10 list had minor changes. Tata Steel made its way to the top-10 list pushing out HDFC. Tata Steel occupied last position in the list. BHEL and SAIL interchanged their positions.

Except Reliance Energy, Reliance Industries, ICICI Bank and Infosys all other counters in the list are in uptrend. All the uptrend counters are likely to be under threat for Tuesday’s trading except Reliance Capital. On the other hand, bull move on Tuesday is likely to terminate all the downtrend counters except ICICI Bank. Buying opportunities are likely to exist in Reliance Energy, Reliance Industries and Infosys. There are six selling opportunities for Tuesday’s trading in the top-10 list. The best is likely to be selling in Reliance Industries. This counter is in sideways mode. Bear move on Tuesday 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.