The Hindu Business Line : Volatile movement

Wednesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear domination on Thursday is likely to change the sentiment reading in their favour.

On the contrary, the current sentiment reading is likely to be strengthened with additional counters.

Nifty Futures

The March month contract opened with a bull gap of around 19 points from its previous close. However, bulls were not able to sustain their initial momentum and gave way to bear domination.

The March month contract moved within a range of around 107 points. The March month contract closed with a loss of around 56 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 nearer to its last traded price. Bear domination during Thursday is likely to reverse the prevailing position in Nifty March month contract.

Stock Futures

The composition and the ranking of the top-10 list had no changes. The long exit level for Satyam is placed at 392.35.

Except Tata Steel all other counters in the top-10 list are in uptrend.

Except Reliance Capital and Infosys all other uptrend counters are likely to be under threat for Thursday’s trading.

There are no buying opportunities for Thursday’s trading. Selling opportunities are likely to exist in Reliance Industries, Reliance Energy, ICICI Bank, SBI, NTPC, Hindalco and BHEL.

The best among the above is likely to be selling in NTPC. This counter is in uptrend. Bear move on Thursday is likely to reverse the existing trend in this counter.

Cash segment

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The composition of the top-10 list had no changes. However the ranking of the top-10 list had minor changes. Suzlon and Infosys interchanged their position. The short exit level for Tata Steel is placed at 702.70.

Except Suzlon all other counters in the top-10 list are in uptrend.

Except Reliance Capital, SAIL and Infosys all other counters in the top-10 list are likely to be under threat for Thursday’s trading. There are no buying opportunities for Thursday’s trading.

Selling opportunities are likely to exist in Reliance Industries, ICICI Bank, Reliance Energy, HDFC, BHEL and SBI.

The best is likely to be selling in ICICI Bank. This counter is in uptrend. Bear move on Thursday 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.