The Hindu Business Line : Volatile movement

Wednesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters continues to remain 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 April month contract opened with a bull gap of around 36 points from its previous close. The April month contract moved within a range of around 79 points. The April month contract closed with a loss of around 8 points from its previous close.

The long position in the Nifty April 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 Thursday’s trading.

Stock Futures

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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. Infosys and Reliance Energy interchanged their position. The long exit level for HDFC Bank is placed at 1430.95.

There are three uptrend and five downtrend counters in the top-10 list. The uptrend counters BHEL and NTPC are likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate all the downtrend counters except Reliance Capital. Buying opportunities are likely to exist in Reliance Industries, Tata Steel, Reliance Energy, ICICI Bank, SBI and TCS. Selling opportunities are likely to exist in Reliance Energy, BHEL and NTPC. The best is likely to be buying in Reliance Energy. This counter is in sideways mode. Bull move on Thursday is likely to initiate a fresh uptrend in this counter.

Cash segment

The composition and the ranking of the top-10 list had no changes.

Except ICICI Bank, Suzlon and HDFC all other counters are in uptrend in the top-10 list. The uptrend counters Reliance Industries, BHEL, Reliance Energy and SAIL are likely to be under threat for Thursday’s trading. On the other hand, bull move on Thursday is likely to terminate HDFC. A lone buying opportunity is likely to exist in HDFC. Selling opportunities are likely to exist in Reliance Industries, BHEL, ICICI Bank, Reliance Energy and SAIL. The best is likely to be buying in HDFC. This counter is in downtrend. Bull 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.

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