The Hindu Business Line : Volatile movement

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

Click here for table

The December month contract opened with a bull gap of around 10 points from its previous close. The December contract moved within a range of around 58 points and closed with a gain of around 14 points from its previous close.

The long position in the December month Nifty contract is intact. The long exit and short entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Wednesday’s trading.

Stock futures

The composition of the top-10 list had minor changes. Tata Steel made its way to top-10 list pushing out BHEL. Tata Steel occupied ninth position in the top-10 list. The long exit level for BHEL is placed at 2769.95.

Except Reliance Industries, NTPC and ICICI Bank, all other counters in the list are in uptrend. The uptrend counters Reliance Energy, IDBI and SBI are likely to be under thereat for Wednesday’s trading. On the other hand, bull move on Wednesday is likely to terminate all the downtrend counters.

Buying opportunities are likely to exist in Reliance Industries, NTPC and ICICI Bank. Selling opportunities are likely to exist in Reliance Energy, NTPC, IDBI and SBI. The best among the above is likely to be selling in SBI. 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 minor changes. Tata Power made its way to the top-10 list pushing out Suzlon.

Tata Power occupied last position in the list. Reliance Industries and Reliance Energy interchanged their positions. SAIL moved from ninth to sixth position in the list. BHEL, SBI and IDBI moved one step lower in the list. The long exit level for Suzlon is placed at 1865.95.

Except Reliance Industries, ICICI Bank and SBI, all other counters in the top-10 list are in uptrend.

Except SAIL and Tata Power, all other uptrend counters are likely to be under threat for Wednesday’s trading. On the other hand, bull move on Wednesday is likely to terminate ICICI Bank and SBI. Buying opportunities are likely to exist in ICICI Bank and SBI.

Selling opportunities are likely to exist in Reliance Energy, Reliance Capital, Infosys, BHEL and IDBI.

The best among the above is likely to be selling in Reliance Energy. This counter is in uptrend. Bear move on Wednesday 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.