The Hindu Business Line : Volatile movement

Bear move on Wednesday 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 January contract opened with a bull gap of around 70 points from its previous close. The January contract moved within a range of around 177 points and closed with a gain of around seven points from its previous close.

The short position in the January 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 Wednesday’s trading activity.

Stock futures

The composition and the ranking of the top-10 list had no changes. Except ICICI Bank all other counters in the top-10 list are in uptrend. All the uptrend counters other than ONGC is likely to be under threat for Wednesday’s trading.

There are no buying opportunities for Wednesday’s trading. Selling opportunities are likely to exist in Reliance Energy, Reliance Industries, Reliance Capital, NTPC, IDBI, Tata Steel, SBI and Bank of India.

The best is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Wednesday is likely to reverse the existing trend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. Except ICICI Bank all other counters in the top-10 list are in uptrend.

Bear move on Wednesday is likely to terminate the uptrend in all the counters except ONGC and Tata Power.

]There are no buying opportunities for Wednesday’s trading. Selling opportunities are likely to exist in Reliance Industries, Reliance Energy, Reliance Capital, SAIL, IDBI, SBI and BHEL. The best among the above is likely to be selling in SBI.

This counter is in uptrend. Bear move on Wednesday 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.