The Hindu Business Line : Volatile movement

Wednesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains neutral. Bear move on Thursday is likely to change the sentiment reading in their favour. On the contrary, bull move is likely to change the sentiment in their favour.

Nifty Futures

The January contract opened with a bear gap of around 10 points from its previous close. The January contract moved within a range of around 110 points and closed with a loss of around 13 points from its previous close.

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The long position in the 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 Thursday’s trading.

Stock futures

The composition and the ranking of the top-10 list had minor changes. HPCL made its way to top-10 list pushing out Infosys. NTPC and ICICI Bank interchanged their positions. The long exit level for IDBI is placed at 172.05.

Reliance Industries, Reliance Capital, NTPC, Reliance Energy and Hindpetro are in uptrend in the list. Tata Steel, MTNL, GAIL, ICICI Bank and Hindalco are in downtrend in the list. The uptrend counters Reliance Industries and Reliance Energy are likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate all the downtrend counters except ICICI Bank. Buying opportunities are likely to exist in Tata Steel, MTNL, GAIL and Hindalco. Selling opportunities are likely to exist in Reliance Industries and Reliance Energy. The best among the above is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Thursday is likely to reverse the trend in this counter.

Cash segment

The composition and the ranking of the top-10 list had minor changes. MTNL and ITC made their way to the top 10 list pushing out Infosys and BHEL. Tata Steel and GAIL interchanged their positions. SAIL and HDFC interchanged their positions. Reliance Capital and Suzlon interchanged their positions. The long exit level for ONGC is placed at 1283.45. The long exit level for Reliance Energy is placed at 2520.15. The short exit level for Infosys is placed at 1709.65.

Reliance Industries, HDFC, Reliance Capital, Suzlon and ITC are in uptrend in the list. ICICI Bank, Tata Steel, SAIL, GAIL and MTNL are in downtrend in the list. The uptrend counters Reliance Industries and ITC are likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate all the downtrend counters except ICICI Bank. Buying opportunities are likely to exist in Tata Steel, SAIL, GAIL and MTNL. Selling opportunities are likely to exist in Reliance Industries and ITC. The best is likely to be selling in ITC. This counter is in uptrend. Bear move on Thursday is likely to reverse the existing 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.