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 December contract opened with a bull gap of around 61 points from its previous close. It moved within a range of around 130 points and closed with a gain of around 23 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 Monday’s trading.

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 Hindalco interchanged their positions.

Except SBI and ICICI Bank all other counters in the top-10 list are in downtrend. Bull move on Monday is likely to terminate all the downtrend counters except Reliance Capital, Hindalco and HPCL. Buying opportunities are likely to exist in Reliance Energy, Reliance Industries, NTPC, IDBI and Tata Steel. There are no selling opportunities for Monday’s trading. The best among the above is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Monday 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 moved from fourth to sixth position in the list.

ICICI Bank and SAIL moved one step higher in the list. The long exit level for Suzlon, Tata Power & GAIL is placed at 1918.95,1304.95 & 451.55 respectively.

Except ICICI Bank, Infosys and SBI all other counters in the top-10 list are in downtrend. The uptrend counter SBI is likely to be under threat for Monday’s trading. On the other hand, bull move on Monday is likely to terminate Reliance Energy, Reliance Industries and ONGC.

Buying opportunities are likely to exist in Reliance Energy, Reliance Industries and ONGC. A long selling opportunity is likely to exist in SBI. The best among the above is likely to be buying in ONGC. This counter is in downtrend. Bull move on Monday 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.