The Hindu Business Line : Volatile movement

Monday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bearish. Bull domination on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment reading is likely to be strengthened.

Nifty Futures

The March month contract opened with a bull gap of around 40 points from its previous close. The March month contract moved within a range of around 105 points. The March month contract closed with a gain of around 71 points from its previous close.

The long position in the Nifty March month contract is intact. 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 Tuesday’s trading.

Stock Futures

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The composition and the ranking of the top-10 list had no changes. Except ICICI Bank, SBI, Infosys and Satyam all other counters in the top-10 list are in downtrend. The uptrend counters SBI and Satyam 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 Energy and Tata Steel. Buying opportunities are likely to exist in Reliance Capital, Reliance Industries, Hindalco and NTPC. Selling opportunities are likely to exist in SBI and Satyam. The best is likely to be buying in Reliance Industries. 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 Capital moved from first to fourth position in the list. Reliance Industries moved one step higher in the list. ICICI Bank moved from fourth to second position in the list.

Except ICICI Bank, HDFC and SBI all other counters in the top-10 list are in downtrend.

The uptrend counter SBI is likely to be under threat for Tuesday’s trading. On the other hand, bull move on Tuesday is likely to terminate Reliance Industries, Reliance Capital and BHEL.

Buying opportunities are likely to exist in Reliance Industries, Reliance Capital and BHEL. A lone selling opportunity is likely to exist in SBI. The best is likely to be buying in Reliance Industries. 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.