The Hindu Business Line : Volatile movement

Thursday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bearish. Bull move on Friday 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 27 points from its previous close. The contract moved within a range of around 217 points and closed with a gain of around 57 points from its previous close.

The short position in the Nifty November contract is intact. 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 Friday’s trading activity.

Stock Futures

The composition of the top-10 list had minor changes. Ranbaxy, Satyam and Maruti made their ways to top-10 list pushing out BHEL, ICICI Bank and Bank of India. The ranking of the top-10 list is totally revamped. The short exit level for BHEL, ICICI Bank and Bank of India are placed at 2621.55, 1158.05 and 358.25 respectively.

Except Reliance Energy, Ranbaxy, Satyam and NTPC, all other counters in the list are in downtrend. Bull move on Friday is likely to terminate Andhra Bank. There are no selling opportunities for Friday’s trading.

A lone buying opportunity is likely to exist in Andhra Bank. Bull move on Friday is likely to reverse the trend in this counter.

Cash segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Infosys and BHEL interchanged their positions. ONGC and SAIL interchanged their positions.

Except SBI all other counters in the top-10 list are in downtrend. Bull move on Friday is likely to terminate Reliance Industries, Reliance Capital, ICICI Bank and Infosys. Buying opportunities are likely to exits in Reliance Industries, Reliance Capital, ICICI Bank and Infosys.

There are no selling opportunities for Friday’s trading. The best among the above is likely to buying in ICICI Bank.

This counter is in downtrend. Bull move on Friday 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.