The Hindu Business Line : Volatile movement

Bull move on Friday is likely to change the sentiment reading in their favour. On the contrary, bear move on Friday is likely to change the sentiment reading in their favour.

NIFTY FUTURES

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The January contract opened with a bull gap of around 92 points from its previous close. The January contract moved within a range of around 182 points and closed with a loss of around 19 points from its previous close.

The short position in the January contract exited due to expiry. The new entry levels are placed for February contract. The 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 and the ranking of the top-10 list had minor changes. MTNL made its way to top-10 list pushing out Bank of India. Tata Steel and IDBI interchanged their position.

All the counters in the top-10 list are turned to sideways due to expiry. The new entry levels are placed based on February contract.

Buying opportunities are likely to exist in Reliance Energy and Tata Steel. Selling opportunities are likely to exist in NTPC, ICICI Bank, SBI, ONGC and MTNL. The best is likely to be selling in SBI. This counter is in sideways mode. Bear move on Friday is likely to initiate a fresh downtrend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. Suzlon made its way to top-10 list pushing out Tata Power. ONGC and IDBI interchanged their position.

Except BHEL all other counters in the top-10 list are in downtrend. The uptrend counters BHEL is likely to be under threat for Friday’s trading.

On the other hand, bull move on Friday is likely to terminate Reliance Industries, Reliance Energy and ONGC.

Buying opportunities are likely to exist in Reliance Industries, Reliance Energy and ONGC. A lone selling opportunity is likely to exist in BHEL.

The best among the above is likely to be selling in BHEL. This counter is in uptrend. Bear move on Friday is likely to reverse the 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.

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