The Hindu Business Line : Volatile movement

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

Nifty Futures: The May contract opened with a bear gap of around one point from its previous close. It moved within a range of around 72 points, hitting an intra-day high of 4,102.5, before closing with a gain of around 27 points from its previous close.

The short position in the contract remains intact. The short exit and long entry levels are placed near to its last traded price. These levels are likely to be trigger during Thursday's trading activity.

Stock Futures: The composition of the top 10 tradable list saw no changes.

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However, there was a minor change in the ranking of ACC and Bank of India due to IDBI, which moved from last to eighth position. The top three tradable counters in this segment were SBI, Reliance and Reliance Capital.

There are five uptrend and five downtrend counters are in the top 10 tradable list. The uptrend counters, ACC and Tata Steel, are under threat for Tuesday.

Five buying and two selling opportunities are likely to exist in the list. The best among the above is likely to be buying in ICICI Bank. This counter is in downtrend. Bear move on Thursday is likely reverse the trend in this counter.

Cash Segment: The composition and ranking of the top 10 tradable counters saw minor changes. TCS made its way to the list, pushing out ONGC and occupied eighth position. The short exit level for BHEL is placed at 2,480.05.

Except ACC, all other counters in the top 10 tradable list are in downtrend. ACC is under threat for Wednesday. There are eight buying and one selling opportunities likely to exist in the list. The best candidate is likely to be buying in SBI. This counter is in downtrend. Bull move on Thursday is likely to reverse the 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.