The Hindu Business Line : Volatile movement

Tuesday's trading activity witnessed volatile movement. However, 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 April contract opened around its previous close and it moved within a range of around 41 points making an intraday high of 3837.80. The April contract closed with a gain of around 2 points from its previous close.

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The long position in the April contract remains intact. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during the normal course of trading during Wednesday.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Tata Motors gave way to Satyam. Satyam occupied tenth position in the ranking.

SBI, Tata Steel and ICICI moved up in the ranking while Century Textiles, Reliance Industries and Reliance Capital moved down. The top-3 tradable counters in this segment were Tata Steel, Infosys and ICICI. The short exit level for TCS is placed at 1222.05.

Most of the counters in the top-10 tradable list are in uptrend. Except Tata Steel, Bank of India and BHEL, other uptrend counters are likely to be under threat for Wednesday's trading. There are ample selling opportunities and a lone buying opportunity for Wednesday's trading.

The best among them is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Wednesday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. SAIL gave way to Tata Motors.

Tata Motors occupied tenth position in the ranking. Satyam, ITC, TCS, Reliance and ACC moved up in the ranking.

There are eight uptrend counters and two downtrend counters in the top-10 tradable list.

Except Tata Steel and Tata Motors, other uptrend counters are likely to be under threat for Wednesday's trading. On the other hand, the downtrend counter TCS is likely to be terminated.

There are ample selling opportunities and a lone buying opportunity for Wednesday's trading.

The best among them is likely to be selling in Infosys. This counter is in uptrend. Bear move on Wednesday is likely to reverse the prevailing 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.