The Hindu Business Line : Volatile movement

Thursday’s trading witnessed volatile movement. The sentiment reading of the tradable counters turned to neutral due to expiry. Bull domination on Friday is likely to change the sentiment reading in their favour. On the contrary, sentiment reading is likely to change in favour of bears.

NIFTY FUTURES

The February contract opened with a bear gap of around 6 points from its previous close. The February contract moved within a range of around 70 points and closed with a gain of around 28 points from its previous close.

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Nifty February contract was left to expire. The new entry levels are placed based on March contract. The long entry level is placed quite nearer to its last traded price. Bull move during Friday is likely to initiate a fresh uptrend in March Nifty contract.

STOCK FUTURES

The composition and the ranking of the top-10 list had minor changes. BHEL made its way to top-10 list pushing out ONGC. BHEL occupied eighth position in the list. Hindalco and Infosys moved one step lower in the list.

All the positions are terminated due to contract expiry. The new entry levels are placed based on March contract. Buying opportunities are likely to exist in all the counters except Reliance Energy.

Selling opportunities are likely to exist in all the counters except NTPC, BHEL and Hindalco. The best among the above is likely to be buying in NTPC. This counter is in sideways mode. Bull move on Friday is likely to initiate a fresh uptrend 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 SBI. Satyam and Tata Steel interchanged their position. The short exit level for SBI is placed at 2096.05.

Except SAIL, BHEL and HDFC all other counters in the list are in downtrend. The uptrend counter HDFC is likely to be under threat for Friday’s trading. Buying opportunities are likely to exist in all the uptrend counters except Reliance Energy.

A lone selling opportunity is likely to exist in Tata Steel. The best 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.

(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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