The Hindu Business Line : Volatile movement

Wednesday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear move on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures

The August month contract opened with a bull gap of around 16 points. However, the bulls could not sustain the initial momentum and gave way to bear pressure. The August contract moved within a range of around 46 points making an intra-day low of 3,350.35. It closed with a loss of around 12 points from its previous close.

The long position in the August contract remains intact and has locked in a profit of around 190 points. Both the long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Wednesday.

Stock futures

The composition and ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Reliance, Sterlite and Reliance Capital. The exit level for ACC is placed at 904.45.

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Most of the counters in the top-10 tradable list are in uptrend. All the uptrend counters are likely to be under threat for Wednesday's trading. On the other hand, the lone downtrend counter ONGC is likely to be terminated during Wednesday's trading.

There are ample selling opportunities and two buying opportunities for Wednesday's trading. The best is likely to be selling in SBI. This counter is in uptrend. Bear move on Wednesday is likely to reverse the existing trend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. All the counters in the list are in uptrend except Maruti. Maruti is in sideways mode. All the uptrend counters in the list are likely to be under threat for Wednesday's trading. There are ample selling opportunities for Wednesday's trading. The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Wednesday 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.