The Hindu Business Line : Volatile movement

Wednesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to neutral. Bull move on Thursday is likely to change the sentiment reading in their favour.

On the contrary, bear move on Thursday’s is likely to change the sentiment reading in their favour.

NIFTY FUTURES

Click here for table

The January contract opened with a bear gap of around 7 points from its previous close. The contract moved within a range of around 176 points and closed with a gain of around 67 points from its previous close.

Volatile movement during the initial part of the day initiated a fresh downtrend in the January contract. However, during the later part of the day’s trading, the downtrend is reversed. 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 Thursday’s trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 list had minor changes. SBI made its way to top-10 list pushing out VSNL. SBI occupied ninth position in the list. IDBI moved one step lower in the list.

Except Reliance Industries, Reliance Capital, GAIL and ICICI Bank all other counters in the top-10 list are in uptrend. Bull move on Thursday is likely to terminate all the downtrend counters.

Buying opportunities are likely to exist in all the downtrend and sideways counters. There are no selling opportunities for Thursday’s trading.

The best among the above is likely to be buying in ICICI Bank. This counter is in sideways mode. Bull move on Thursday is likely to initiate a fresh uptrend 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. Reliance Energy moved from first to eighth position in the list. Reliance Capital moved from seventh to last position in the list. Tata Steel moved from ninth to seventh position in the list.

Except ICICI Bank, HDFC, Reliance Energy and Tata Power all other counters in the top-10 list are in downtrend.

Bull move on Thursday is likely to terminate all the downtrend counters in the list except GAIL.

Buying opportunities are likely to exist in Reliance Industries, SAIL, ICICI Bank, Infosys, Tata Steel and Reliance Capital. There are no selling opportunities for Thursday’s trading. The best is likely to be buying in Infosys.

This counter is in downtrend. Bull move on Thursday 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.