The Hindu Business Line : Volatile movement

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

Nifty Futures: The August month contract opened with a bear gap of around 16 points from its previous close. The August month contract moved within a range of around 103 points. The August month contract closed with a gain of 29 point from its previous close.

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The short position in the August Month Nifty Futures contract is undisturbed. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Friday’s trading activity.

Stock Futures: The composition of the top-10 tradable list had minor changes. However, the ranking of the top-10 list had no changes. BHEL made its way to top-10 list pushing out Century Textiles. BHEL occupied last position in the list.

Except SBI, Reliance Energy and BHEL all other counters in the list are in downtrend. The uptrend counter BHEL is under threat for Friday’s trading. On the other hand, bull domination on Friday is likely to terminate Reliance Capital, IDBI and ICICI Bank.

Buying opportunities are likely to exist in Reliance Capital, IDBI and ICICI Bank. A lone selling opportunity is likely to exist in BHEL for Friday’s trading. The best is likely to be buying in ICICI Bank. This counter is in downtrend. Bull move on Friday is likely to reverse the existing trend in this counter.

Cash Segment: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. SAIL and SBI interchanged their position in the list.

Except SBI and BHEL all other counters in the list are in downtrend. The uptrend counter BHEL is under threat for Friday’s trading. On the other hand, bull domination on Friday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in Reliance Industries, Infosys, Reliance Energy, Reliance Capital, SAIL, Tata Steel, ITC and Satyam. A lone selling opportunity is likely to exist in BHEL for Friday’s trading. The best among the above is likely to be buying in Tata Steel. This counter is in downtrend. Bull move on Friday 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.