The Hindu Business Line : Volatile movement

Tuesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters continues to remain bullish. Bear domination 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

The February month contract opened with a bull gap of around 70 points from its previous close. The February month contract moved within a range of around 123 points. The February month contract closed with a loss of around 22 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 nearer to its last traded price. Bear move on Wednesday is likely reverse the prevailing position in Nifty contract.

Stock Futures

The composition and the ranking of the top-10 list had minor changes. Infosys made its way to top-10 list pushing out ONGC. Infosys occupied last position in the list.

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Hindalco moved from last to eighth position in the list. The long exit levels for BHEL and ONGC are placed at 2068.55 and 1002.85.

Except Reliance Energy, Reliance Capital, Reliance Industries and Infosys all other counters in the top-10 list are in uptrend. Except Hindalco, all other uptrend counters in the top-10 list are likely to be under threat for Wednesday’s trading. Buying opportunities are likely to exist in Reliance Capital and Infosys.

Selling opportunities are likely to exist in NTPC, ICICI Bank, Tata Steel, SBI and IDBI. The best among the above is likely to be selling in NTPC.

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

The composition and the ranking of the top-10 list had minor changes. HDFC made its way to top-10 list pushing out ONGC. Reliance Capital and Reliance Industries interchanged their positions. SBI moved one step higher in the list. Suzlon moved from last to eighth position in the list.

Reliance Energy, Reliance Industries, Suzlon, Infosys and HDFC are in downtrend in the top-10 list. Reliance Capital, ICICI Bank, SAIL, BHEL and SBI are in uptrend in the top-10 list.

The uptrend counters ICICI Bank, SAIL and SBI are likely to be under threat for Wednesday’s trading.

A lone buying opportunity is likely to exist in Infosys. Selling opportunities are likely to exist in ICICI Bank, SAIL and SBI.

The best is likely to be buying in SBI. 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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