The Hindu Business Line : Volatile movement

WEDNESDAY'S market activity witnessed volatile movement. However, the sentiment reading of the tradable counters changed to bearish. Bull domination on Thursday is likely to change the sentiment reading in their favour. On the contrary, the bearish sentiment is likely to be strengthened.

Nifty Futures Recommendation: The December month contract opened around its previous close. The December month contract moved with in a range of around 49 points touching an intra-day low of 2,794.10. It closed around its previous close.

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The December month contract entered a fresh short position in the morning session. The exit and buy levels are placed quite far away from its last traded price. In the normal course of trading these levels are unlikely to be triggered during Thursday's trading.

Stock futures recommendation: The composition and the ranking of the top 10 tradable list had minor changes. Tata Steel moved out and ONGC got into the list.

Tata Motors and Satyam moved up to the third and fourth positions respectively. The top three tradable counters in this segment were Reliance Capital, SBI, and Reliance.

Both the uptrend counters in the top 10 tradable list are likely to be under threat for Thursday's trading. On the other hand, all the downtrend counters in the list are likely to be terminated.

There are three opportunities on the sell side and ample opportunities on the buy side. The best for Thursday's trading is likely to be buying in Reliance. This counter is in downtrend. Bull move on Thursday is likely to reverse the existing trend in this counter.

Cash Segment: The composition of the top 10 tradable list had no changes. However, the ranking of the list had minor changes. Satyam and VSNL interchanged their positions.

All the uptrend counters in the top 10 tradable list are likely to be terminated during Thursday's trading. Four downtrend counters in the list are likely to be under threat.

There are four opportunities on either side of trading. The best is likely to be buying in Reliance. Bull pressure 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.