The Hindu Business Line : Volatile movement

Friday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bearish. Bull move on Monday is likely to change the sentiment reading in their favour.

On the contrary, the current bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

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The October month contract opened with a bull gap of around 16 points from its previous close. The contract moved within a range of around 93 points, and closed with a loss of around 42 points from its previous close.

The long position in the October contract is undisturbed. The long exit and short entry levels are placed quite faraway from its last traded price. These levels are unlikely to be triggered during Monday’s trading.

STOCK FUTURES

The composition and ranking of the top-10 list had minor changes. Hindalco made its way to the top-10 list pushing out Infosys. Hindalco occupied seventh position; Tata Steel and SBI interchanged their positions.

ICICI Bank, IDBI and Tata Power moved one step lower in the list. The long exit level for Infosys is placed at Rs 1952.55.

Except Reliance Energy, Reliance Industries and NTPC all other counters in the top-10 tradable list are in downtrend. The uptrend counters Reliance Industries and NTPC are likely to be under threat for Monday’s trading. There are no buying opportunities for Monday’s trading.

Selling opportunities are likely to exist in Reliance Industries and NTPC.

The best is likely to be selling in NTPC. This counter is in uptrend.

Bear move on Monday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had no changes. Except Reliance Energy, Reliance Industries and Infosys all other counters in the top-10 tradable list are in downtrend.

The uptrend counters Reliance Industries and Infosys are likely to be under threat for Monday’s trading. There are no buying opportunities for Monday’s trading.

Selling opportunities are likely to exist in Reliance Industries and Infosys.

The best is likely to be selling in Infosys. This counter is in uptrend. Bear pressure on Monday 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.