The Hindu Business Line : Sideways movement

Wednesday’s market witnessed sideways movement. However, the sentiment reading of the tradable counters remains bullish. Bear move on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be strengthened.

Nifty futures

The September month contract opened with a bull gap of around 20.45 points from its previous close. The September month contract moved within a range of around 37 points. The September month contract closed with a marginal gain of 0.45 points from its previous close.

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The long position in the September month contract is undisturbed. The long exit and short entry levels are placed very nearer to its last traded price. These levels are likely to be triggered during Thursday’s trading.

Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 tradable list had minor changes. Tisco and Reliance Capital interchange their positions. Reliance Energy and State Bank interchange their positions.

IDBI, ICICI Bank and Century Textiles are the downtrend counters in the top-10 tradable list and these three are the opportunities on buy side. All other counters in the list are in uptrend. Except Reliance Capital all other counters are likely to be under threat for Thursday’s trading. There are ample selling opportunities exist in sell side. The best is selling in BHEL. This counter is in uptrend. Bear move on Thursday is likely to reverse the existing trend in this counter.

CASH SEGMENT

There are no changes in composition of the top-10 tradable list. However, the ranking of the top-10 list had minor changes. Reliance Capital occupies third position in the top-10 list and ICICI Bank was pushed down to sixth position in the top-10 list.

State Bank moved one step down from yesterday’s position. The short exit level for Satyam Computers is placed at 437.55.

Except Reliance Capital and Reliance Energy all other counters are under threat for Thursday.

Buying opportunities is likely to exist in ICICI, IDBI and Infosys. On the other hand there are ample selling opportunities exist in the top-10 tradable list.

The best among these is selling in Tisco. This counter is in uptrend. The sell level of this counter is likely to trigger during Thursday’s trading activity.

(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.