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 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 33 points from its previous close. The December contract moved within a range of around 66 points and closed with a gain of around 3 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 Monday’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. GAIL and ICICI Bank interchanged their positions.

Except Reliance Energy, Tata Steel and GAIL all other counters in the top-10 list are in downtrend. The uptrend counter Reliance Energy is likely to be under threat for Monday’s trading. On the other hand, Bull move on Monday is likely to terminate Reliance Capital, NTPC and ICICI Bank. Buying opportunities are likely to exist in Reliance Capital, Tata Steel, NTPC, GAIL and ICICI Bank.

Selling opportunities are likely to exist in Reliance Energy, Tata Steel and GAIL. The best among the above is likely to selling in Tata Steel. This counter is in sideways mode. Bear move on Monday is likely to initiate a fresh downtrend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. BHEL made its way to top-10 list pushing out Suzlon. SAIL and ICICI Bank interchanged their positions. Reliance Capital moved down from fifth to seventh position in the list. GAIL and Infosys moved one step higher in the list. HDFC and Tata Steel interchanged their positions. The short exit level for SBI is placed at 2350.75.

Except Reliance Energy, SAIL, ICICI Bank, GAIL and Infosys, all other counters in the top-10 list are in downtrend. The uptrend counters Reliance Energy and SAIL are likely to be under threat for Monday’s trading. On the other hand, bull move on Monday is likely to terminate Reliance Industries, Reliance Capital and Tata Steel. Buying opportunities are likely to exist in all sideways and downtrend counters except HDFC and BHEL.

Selling opportunities are likely to exist in Reliance Energy, SAIL, ICICI Bank and GAIL. The best is likely to be selling in GAIL. This counter is in sideways mode. Bear move on Monday is likely to initiate a fresh downtrend 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.