The Hindu Business Line : Volatile movement

Tuesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains 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 contract opened with a bull gap of around 30 points from its previous close. The February contract moved within a range of around 78 points and closed with a gain of around 50 points from its previous close.

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Bull move during the day initiated a fresh uptrend 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 Wednesday’s trading.

STOCK FUTURES

The composition and the ranking of the top-10 list had no changes. Except Reliance Capital all other counters in the top-10 list are in uptrend.

Except Infosys all other uptrend counters are likely to be under threat for Wednesday’s trading. There are no buying opportunities for Wednesday’s trading. Selling opportunities are likely to exist in Reliance Energy, Reliance Industries, NTPC, Tata Steel, ICICI Bank, SBI, Hindalco and ONGC.

The best among the above is likely to be selling in SBI. 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. Satyam made its way to top-10 list pushing out SBI. Suzlon and Tata Steel interchanged their positions.

All the counters in the top-10 list are in uptrend. Except BHEL and Suzlon all other counters are likely to be under threat for Wednesday’s trading. There are no buying opportunities for Wednesday’s trading.

Selling opportunities are likely to exist in Reliance Energy, Reliance Capital, Reliance Industries, ICICI Bank, SAIL, Infosys, Tata Steel and Satyam. The best is likely to be selling in Tata Steel.

This counter is in uptrend. Bear 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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