The Hindu Business Line : Volatile movement

Thursday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remain bullish. Bear 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 December contract opened with a bull gap of around 3 points from its previous close. The contract moved within a range of around 108 points and closed with a gain of around 7 points from its previous close.

The long position in the December 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 Friday’s trading.

STOCK FUTURES

The composition and the ranking of the top-10 list had no changes. Except Hindalco and Tata Steel all other counters in the list are in uptrend.

Except Reliance Energy and SBI all other uptrend counters are likely to be under thereat for Friday’s trading. There are no buying opportunities for Friday’s trading. Selling opportunities are likely to exist in Reliance Capital, Reliance Industries, NTPC, IDBI, ICICI Bank and HPCL.

The best among the above is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Friday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. ONGC made its way to top-10 list pushing out GAIL. ONGC occupied last position in the list.

Infosys and ICICI Bank interchanged their positions. The long exit level for SUZLON is placed at 1899.95. The long exit level for Tata Power is placed at 1210.60. The long exit level for GAIL is placed at 451.55.

Except Reliance Capital and SAIL all other counters in the top-10 list are in uptrend. All the uptrend counters in the top-10 list are likely to be under threat for Friday’s trading.

There are no buying opportunities for Friday’s trading. Selling opportunities are likely to exist in all the uptrend counters. The best among the above is likely to be selling in Reliance Industries.

This counter is in uptrend. Bear 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.