The Hindu Business Line : Sideways movement

Wednesday’s trading activity witnessed a sideways movement. 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, prevailing bullish sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

The September contract opened with a bear gap of around three points from its previous close. It moved within a range of around 54 points. It closed with a gain of around 23 points from its previous close.

The long position in the September Nifty contract remains intact. The long exit and short entry levels are placed quite far away from its last traded price. These levels are unlikely 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 list had minor changes. Tata Steel moved to sixth position and State Bank occupies fourth position while IDBI occupies fifth position in the top-10 tradable list. There are seven uptrend and two down trend counters in the top-10 tradable list. Tata Steel and Century Textiles are in down trend. Bear domination on Thursday is likely to terminate the uptrend in Reliance capital, NTPC and ACC during Thursday’s trading. On the other hand, Tata Steel and Century textiles are under threat for Thursday’s trading. Buying opportunities are likely to exist in Tata Steel and Century Textiles.

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Selling opportunities are likely to exist in Reliance Capital, NTPC and ACC for Thursday’s trading. The best among the above is likely to be selling in NTPC. This counter is in uptrend. Bear move on Thursday 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 tradable counters had minor changes.

IDBI moved to fifth position in the top-10 tradable list. State Bank occupied sixth position and Infosys occupied eight positions in the top-10 tradable list. There are no down trend counters in the top-10 tradable list. Uptrend counters Reliance Energy and Tata Steel are likely to be under threat for Thursday’s trading. There are two selling opportunities in Reliance Energy and Tata Steel for Thursday. The best is likely to be selling in Reliance Energy.

This counter is in uptrend. Bear pressure on Thursday is likely to trigger the sell level 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.