The Hindu Business Line : Volatile movement

Bull move on Thursday 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 226 points from its previous close. The February contract moved within a range of around 112 points and closed with a loss of around 201 points from its previous close.

Bear move during the day reversed the long position in the February Nifty contract. 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 Thursday’s trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 list had no changes. Except Tata Steel all other counters in the top-10 list are in downtrend. The uptrend counter Tata Steel is 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 ONGC. Buying opportunities are likely to exist in all the downtrend counters except ONGC. A lone selling opportunity is likely to exist in Tata Steel.

The best is likely to be buying in Reliance Energy. This counter is in downtrend. Bull move on Thursday 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. The long exit level for Tata Steel is placed at 786.20.

All the counters in the 10 list are in downtrend.

Bull move on Thursday is likely to terminate all the downtrend counters except SAIL and Infosys. Buying opportunities are likely to exist in all the counters except SAIL and Infosys.

There are no selling opportunities for Thursday’s trading. The best among the above is likely to be buying in Reliance Energy.

This counter is in downtrend. Bull 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.

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