The Hindu Business Line : Volatile movement

Friday's trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters remains bullish. Bear move on Monday is likely to change the sentiment reading in its favour.

On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty Futures

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The August contract opened with a bull gap of around 5 points. The August contract moved with in a range of around 53 points making an intra-day high of 3274.80. It closed with a gain of around 18 points from its previous close.

The long position in the August contract remains intact and has locked in a decent 61 points. Both the long exit and short entry levels are placed quite far away from its last traded price. In the normal course of trading during Monday these levels are unlikely to be triggered.

Stock Futures

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Infosys moved down in the ranking and occupied fifth position. ONGC and SBI moved up and occupied third and fourth positions, respectively.

The top-3 tradable counters in this segment were Reliance, Tisco and Satyam.

Most of the counters in the list are in uptrend. There are four downtrend counters in the list. All the counters in the top-10 tradable list are likely to be under threat for Monday's trading. There are four opportunities on either side for Monday's trading.

The best is likely to be selling in Tata Motors. This counter is in uptrend. Bear move on Monday is likely to trigger the downtrend in this counter.

Cash Segment

The composition and the ranking of the top-10 tradable list had no changes. Most of the counters in the list are in uptrend. All the uptrend counters are likely to be under threat during Monday's trading.

On the other hand, the lone downtrend counter ITC is likely to be terminated during Monday's trading. There are ample selling opportunities and one buying opportunity for Monday's trading.

The best is likely to be selling in L&T. This counter is in uptrend. Bear move on Monday is likely to trigger the downtrend 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.