The Hindu Business Line : Volatile movement

Monday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to 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 37 points from its previous close. The February month contract moved within a range of around 181 points. The February month contract closed with a gain of around 110 points from its previous close.

Initial bull move during the day reversed the short position in the February month Nifty contract. However, the fresh position was terminated during the latter part of the day’s trading. Nifty February month contract remains sideways. The long entry level is placed quite nearer to its last traded price. This level is likely to be triggered during Tuesday’s trading.

Stock Futures

Click here for table

The composition and the ranking of the top-10 list had no changes. Except Reliance Capital, Tata Steel, ICICI Bank and SBI all other counters in the top-10 list are in uptrend. The uptrend counters Infosys and ONGC are likely to be under threat for Tuesday’s trading. On the other hand, bull move on Tuesday is likely to terminate all the downtrend counters except Reliance Capital. Buying opportunities are likely to exist in Tata Steel, ICICI Bank and SBI. Selling opportunities are likely to exist in Infosys and ONGC. The best among the above is likely to be buying in ICICI Bank. This counter is in downtrend. Bull move on Tuesday is likely to reverse the existing trend in this counter.

Cash Segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Energy and Reliance Capital interchanged their positions. SBI moved from eighth to last position in the list. Tata Steel and Suzlon moved one step higher in the list. The short exit level for HDFC is placed at 2602.05.

There are four uptrend and four downtrend counters in the top-10 list. The uptrend counters BHEL and Infosys are likely to be under threat for Tuesday’s trading. On the other hand, bull move on Tuesday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in Reliance Capital, Reliance Industries, ICICI Bank, Tata Steel and SBI. Selling opportunities are likely to exist in BHEL, Infosys and Suzlon. The best is likely to be buying in Tata Steel. This counter is in downtrend. Bull 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.

More Stories on : Technical Analysis

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page