The Hindu Business Line : Volatile movement

Tuesday's trading activity witnessed a volatile movement. However, the sentiment reading of the tradable counters changed to 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.

NIFTY FUTURES

The July month contract opened with a bull gap of around 13 points from its previous close. The July contract moved within a range of around 40 points. The July contract closed with a gain of two points from its previous close.

The long position in the July contract is undisturbed. The long exit and short entry levels are quite far away from its last traded price. These levels are unlikely to be triggered during Wednesday's trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. Reliance Energy made its way to top-10 list pushing out Bank of India. Reliance Energy occupied fifth position in the list. IDBI, Reliance Capital, Hindalco, ICICIBANK, Century Textiles moved one step lower in the list.

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Reliance Industries, Reliance Energy, IDBI, Hindalco, and Century Textiles are in uptrend. Tata Steel, ACC and Reliance Capital are in downtrend. Except Reliance Energy all other uptrend counters are under threat for Wednesday's trading. On the other hand, bull domination on Wednesday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in SBI, Tata Steel, ACC, Reliance Capital and ICICIBANK. Selling opportunities are likely to exist in Reliance Industries, SBI, IDBI, Hindalco, ICICIBANK and Century Textiles. The best is likely to be selling in ICICI BANK. This counter is in sideways mode. Bear move on Wednesday is likely to initiate a fresh downtrend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. Reliance Energy made its way to top-10 list pushing out TCS. Reliance Energy occupied seventh position in the list. Tata Steel, Satyam and Hindalco moved one step lower in the list. Except Infosys, ACC and Tata Steel all other counters are in uptrend. In the uptrend counters Reliance Industries, SBI, IDBI and Hindalco are likely to be under threat for Wednesday's trading. On the other hand, bull domination on Wednesday is likely to terminate all downtrend counters in the list. Buying opportunities are likely to exist in Infosys, ACC and Tata Steel. Selling opportunities are likely to exist in Reliance Industries, SBI, IDBI and Hindalco. The best among the above is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Wednesday 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.