The Hindu Business Line : Volatile movement

Bull 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

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The December contract opened with a bull gap of around 9 points from its previous close.

The December contract moved within a range of around 135 points and closed with a gain of around 13 points from its previous close. The short position in the December Nifty 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 Wednesday’s trading activity.

STOCK FUTURES

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes.

Tata Steel and IDBI interchanged their positions. The short exit level for ONGC is placed at 1177.45.

All the counters in the top-10 list are in downtrend. Bull move on Wednesday is likely to terminate all the counters except Reliance Energy, IDBI and SBI.

Buying opportunities are likely to exist in Reliance Industries, Reliance Capital, Tata Steel, NTPC, ICICI Bank, GAIL and MTNL. There are no selling opportunities for Wednesday’s trading.

The best among the above is likely to be GAIL. Bull move on Wednesday 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.

SAIL and Reliance Capital interchanged their positions. GAIL moved up from eighth to sixth position in the list. BHEL moved down from seventh to ninth position in the list. Infosys moved one step lower in the list. SBI moved one step higher in the list.

Except Infosys all other counters in the top-10 list are in downtrend. Bull move on Wednesday is likely to terminate Reliance Industries, Reliance Capital, GAIL and Suzlon. Buying opportunities are likely to exist in Reliance Industries, Reliance Capital, GAIL and Suzlon. There are no selling opportunities for Wednesday’s trading.

The best is likely to be buying in GAIL. This counter is in downtrend. Bull 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.