The Hindu Business Line : Volatile movement

Monday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bullish. Bear move on Tuesday 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 July month contract opened with a bull gap of around four points from its previous close. The July month contract moved within a range of around 32 points. The July month contract closed with a gain of around nine points from its previous close.

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The long position in the July month nifty futures contact is intact. The long exit and short entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Tuesday’s trading activity.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. IDBI and Reliance Industries interchanged their position. Hindalco moved down to n inth position, while ACC moved to seventh position in the list. The short exit level for ONGC is placed at 885.95.

Except Reliance Industries and Hindalco all other counters in the top-10 tradable list are in uptrend. Bear move on Tuesday is likely to terminate all the uptrend counters in the list except ACC and IDBI. On the other hand, Reliance Industries is likely to be under threat for Tuesday’s trading. Buying opportunity is likely to exist in Reliance Industries. Selling opportunities are likely to exist in Reliance Capital, SBI, Tata Steel, Century Textiles, Satyam and ICICI Bank. The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Tuesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Satyam and Tata Motors interchanged their position.

Except Reliance Industries, SAIL and Satyam all other counters in the list are in uptrend. Except IDBI and ACC all other uptrend counters are likely to be under threat for Tuesday’s trading. On the other hand, bull domination on Tuesday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in Reliance Industries, SAIL and Satyam. The selling opportunities are likely to exist in SBI, Reliance Industries, Tata Steel, Infosys, BHEL and Tata Motors. The best among the above is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Tuesday 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.