The Hindu Business Line : Volatile movement

Friday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bearish. Bull move on Monday 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 bull gap of around 24 points from its previous close. The February contract moved within a range of around 156 points and closed with a loss of around 30 points from its previous close.

The short position in the February Nifty 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 Monday’s trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 list had no changes. All the counters in the top-10 list are in downtrend. Bull move on Monday is likely to terminate Reliance Industries, SBI and ONGC. Buying opportunities are likely to exist in Reliance Industries, SBI and ONGC. There are no selling opportunities for Monday’s trading. The best is likely to be buying in SBI.

This counter is in downtrend. Bull move on Monday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. Infosys and BHEL interchanged their position.

Except Infosys all other counters in the top-10 list are in downtrend. Bull move on Monday is likely to terminate ONGC, SBI and BHEL.

Buying opportunities are likely to exist in ONGC, SBI and BHEL. There are no selling opportunities for Monday’s trading. The best among the above is likely to be buying in ONGC.

This counter is in downtrend. Bull move on Monday 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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