The Hindu Business Line : Volatile movement

Thursday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bullish. Bear move on Friday 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 35 points from its previous close. The contract moved within a range of around 72 points and closed with a loss of around 45 points from its previous close.

The uptrend in the Nifty January 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 Friday’s trading activity.

Stock futures

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The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. GAIL and Tata Steel interchanged their positions.

Except GAIL and ICICI Bank all other counters in the top-10 list are in uptrend. The uptrend counters Reliance Industries, SBI and IDBI are likely to be under threat for Friday’s trading. Bull move on Friday is likely to terminate GAIL. Buying opportunities are likely to exist in GAIL and ICICI Bank. Selling opportunities are likely to exist in Reliance Industries, SBI and IDBI. The best among the above is likely to be selling in SBI. This counter is in uptrend. Bear move on Friday is likely to reverse the uptrend in this counter.

Cash segment

The composition and the ranking of the top-10 list had minor changes. ONGC made its way to top-10 list pushing out Tata Power. SAIL moved from second to fifth position in the list. Reliance Energy and HDFC interchanged their positions. ICICI Bank, GAIL, Infosys and Reliance Capital moved one step higher in the list. The long exit level for Tata Power is placed at 1480.30.

Except ICICI Bank, Infosys, SAIL and Tata Steel, all other counters in the top-10 list are in uptrend. The uptrend counters Reliance Industries and HDFC are likely to be under threat for Friday’s trading. On the other hand, bull move on Friday is likely to terminate Tata Steel. Buying opportunities are likely to exist in ICICI Bank and Tata Steel. Selling opportunities are likely to exist in Reliance Industries, ICICI Bank, Infosys and HDFC. The best is likely to be selling in ICICI Bank. This counter is in sideways mode. Bear move on Friday 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.