The Hindu Business Line : Volatile movement

Wednesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bullish. Bear domination 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 month contract opened with a bull gap of around 58 points from its previous close.

The February month contract moved within a range of around 140 points. The February month contract closed with a gain of around 135 points from its previous close.

Bull move during the day reversed the short position in the February month Nifty contract.

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 activity.

Stock futures

The composition and the ranking of the top-10 list had no changes. There are five up trend and five downtrend counters in the top-10 list. Two uptrend counters Reliance Industries and ONGC are likely to be under threat for Thursday’s trading. On the other hand downtrend in NTPC, ICICI Bank and MTNL are likely to be terminated.

NTPC, ICICI Bank and MTNL are likely to be the buying opportunities for Thursday’s trading.

On the other hand Reliance Industries and ONGC are likely to be the selling opportunities. The best among the above is likely to be buying in MTNL. This counter is in downtrend. Bull move on Thursday is likely to reverse the current trend in this counter.

Cash segment

The composition and the ranking of the list remain unchanged.

Except Reliance Energy and IDBI, all the counters in the top-10 list are in up trend. Two uptrend counters Reliance Industries and ONGC are likely to be under threat for Thursday’s trading.

There are two selling opportunities in Reliance Industries and ONGC. There are no buying opportunities for Thursday’s trading.

The best is likely to be selling in ONGC. This counter is in uptrend. Bear move on Thursday is likely to reverse the existing position 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.