The Hindu Business Line : Volatile movement

Thursday’s market activity witnessed volatile movement. The sentiment reading of the tradable counters remains bearish. Bull domination on Friday 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 81 points from its previous close. The February contract moved within a range of around 143 points and closed with a gain of around 77 points from its previous close.

Bull move during the day reversed the short position in the February 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 Friday’s trading.

STOCK FUTURES

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

Except Hindalco, Infosys and ONGC all other counters in the top-10 list are in downtrend. The uptrend counter ONGC is likely to be under threat for Friday’s trading.

On the other hand, bull move on Friday is likely to terminate all the downtrend counters except Reliance Capital. Buying opportunities are likely to exist in Reliance Energy, Reliance Industries, NTPC, ICICI Bank, Tata Steel and SBI. A lone selling opportunity is likely to exist in ONGC. The best among the above is likely to be buying in Tata Steel. This counter is in downtrend. Bull move on Friday 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. Satyam made its way to top-10 list pushing out Tata Steel. Reliance Capital and Reliance Energy interchanged their positions.

Suzlon moved from sixth to eighth position in the list. BHEL and Infosys moved one step higher in the list. SBI moved one step lower in the list. The short exit levels for HDFC and Tata Steel are placed at 2805.15 and 810.05 respectively.

Except SAIL, Infosys, Suzlon and Satyam all other counters in the top-10 list are in downtrend. The uptrend counter Suzlon is likely to be under threat for Friday’s trading. On the other hand, bull move on Friday is likely to terminate Reliance Industries and SBI.

Buying opportunities are likely to exist in Reliance Industries and SBI. A lone selling opportunity is likely to exist in Suzlon. The best is likely to be selling in Suzlon. This counter is in uptrend. Bear move on Friday 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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