The Hindu Business Line : Volatile movement

Tuesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear move on Wednesday is likely to change the sentiment reading in their favour.

On the contrary, the current sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

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The February contract opened with a bear gap of around 23 points from its previous close.

The February contract moved within a range of around 88 points and closed with a gain of around 40 points from its previous close.

The long position in the February Nifty 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 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.

Except Reliance Capital, NTPC, Tata Steel and IDBI all other uptrend counters are likely to be under threat for Wednesday’s trading.

On the other hand, bull move on Wednesday is likely to terminate ICICI Bank. A lone buying opportunity is likely to exist in ICICI Bank. Selling opportunities are likely to exist in Reliance Energy, Reliance Industries, SBI, ONGC and MTNL. The best is likely to be selling in SBI.

This counter is in uptrend. Bear move on Wednesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had minor changes. Infosys made its way to top-10 list pushing out Tata Steel.

The ranking had no changes. The long exit level for Tata Steel is placed at 778.45.

Except Reliance Energy, ICICI Bank, SAIL and Infosys all other counters in the top-10 list are in uptrend.

The uptrend counters Reliance Industries, SBI and BHEL are likely to be under threat for Wednesday’s trading.

Buying opportunities are likely to exist in all the downtrend counters. Selling opportunities are likely to exist in Reliance Industries, SBI and BHEL.

The best among the above is likely to be buying in SAIL. This counter is in downtrend. Bull move on Wednesday 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.

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