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

The January contract opened with a bear gap of around 40 points from its previous close. The contract moved within a range of around 80 points and closed with a loss of around 1 point from its previous close.

Bear move during the day initiated fresh downtrend in the January Nifty contract. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Monday’s trading.

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STOCK FUTURES

The composition and ranking of the top-10 list had no changes.

Reliance Energy, Reliance Capital, Tata Steel and NTPC are in uptrend in the top-10 list. Reliance Industries, ICICI Bank, MTNL, SBI and IDBI are in downtrend in the list.

The uptrend counters Reliance Capital and NTPC are likely to be under threat for Monday’s trading. On the other hand, bull move on Monday is likely to terminate all the downtrend counters.

Buying opportunities are likely to exist in all the downtrend and sideways counters.

Selling opportunities are likely to exist in Reliance Capital, GAIL and NTPC. 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 existing 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 and Reliance Capital interchanged their positions.

Reliance Energy and ICICI Bank are in uptrend in the list. GAIL, Infosys and Reliance Capital are in downtrend in the list. Reliance Industries, SAIL, Tata Steel, HDFC and Tata Power are in sideways mode.

The uptrend counter ICICI Bank is likely to be under threat for Monday’s trading. On the other hand, bull move on Monday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in all the downtrend and sideways counters.

Selling opportunities are likely to exist in Reliance Industries, ICICI Bank and HDFC. The best is likely to be buying in SAIL.

This counter is in sideways mode. Bull move on Monday is likely to initiate a fresh uptrend 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.