The Hindu Business Line : Volatile movement

Monday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear domination on Tuesday 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

The February month contract opened with a bull gap of around 15 points from its previous close. The February month contract moved within a range of around 112 points. The February month contract closed with a loss of around 11 points from its previous close.

The long position in the February month 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 Tuesday’s trading activity.

Stock Futures

The composition and the ranking of the top-10 list had minor changes. Hindalco made its way to top-10 list pushing out BHEL. ONGC and IDBI interchanged their position. The long exit level for BHEL is placed at 2068.55.

Except Reliance Energy all other counters in the top-10 list are in uptrend. Except ICICI Bank and Hindalco all other counters in the top-10 list are likely to be under threat for Tuesday’s trading. There are no buying opportunities for Tuesday’s trading. Selling opportunities are likely to exist in Reliance Capital, Reliance Industries, NTPC, Tata Steel, SBI, ONGC and IDBI. The best among the above is likely to be selling in Reliance Industries.

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

Cash segment

The composition of the top-10 list had minor changes. Suzlon made its way to top-10 list pushing out IDBI. Ranking had no changes. Except ONGC, Infosys and Suzlon, all other counters in the top-10 list are in uptrend. Except Reliance Capital and BHEL all other uptrend counters are likely to be under threat for Tuesday’s trading.

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On the other hand, bull move on Tuesday is likely to terminate ONGC and Infosys. Buying opportunities are likely to exist in ONGC and Infosys. Selling opportunities are likely to exist in Reliance Energy, Reliance Industries, ICICI Bank, SAIL and SBI. The best is likely to be selling in Reliance Energy. This counter is in uptrend. Bear move on Tuesday 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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