The Hindu Business Line : Volatile movement

Bull move on Monday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment reading is likely to be strengthened with additional counters.

NIFTY FUTURES

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The January contract opened with a bear gap of around 10 points from its previous close. The January contract moved within a range of around 110 points and closed with a gain of around 61 points from its previous close.

The short position in the January contract is intact. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Monday’s trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 list had minor changes. IDBI and Tata Tea made their ways to top-10 list pushing out Hindalco and GAIL. Reliance Capital moved from second to fifth position in the list.

NTPC moved from fourth to ninth position in list. Bank of Baroda moved from sixth to third position in the list. The short exit level for MTNL is placed at 192.20. The short exit level for Hindalco is placed at 210.45. The short exit level for GAIL is placed at 517.80. Except Reliance Industries, Bank of Baroda and ICICI Bank all other counters are in downtrend. Bull move on Monday is likely to terminate all the downtrend counters except Tata Steel. Buying opportunities are likely to exist in all the downtrend counters except Tata Steel. There are no selling opportunities for Monday’s trading. The best among the above is likely to be buying in NTPC. This counter is in downtrend. Bull move on Monday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. Hindalco, Tata Power, BHEL and Satyam made their ways to top-10 list pushing out SAIL, Reliance Capital, GAIL and ONGC. MTNL moved from eighth to fourth position in the list. ITC moved from ninth to sixth position in the list. The short exit level for SAIL, GAIL and ONGC is placed at 259.6, 509.75 and 1324.50 respectively.

Except Reliance Industries and ICICI Bank all other counters in the list are in downtrend. Bull move on Monday is likely to terminate Tata Steel, HDFC, ITC, Hindalco and BHEL.

Buying opportunities are likely to exist in Tata Steel, HDFC, ITC, Hindalco and BHEL. There are no selling opportunities for Monday’s trading. The best is likely to be buying in ITC. This counter is in downtrend. Bull move 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.