The Hindu Business Line : Volatile movement

Wednesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bearish. Bull domination on Friday 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 March month contract opened with a bull gap of around two points from its previous close.

The March month contract moved within a range of around 96 points. The March month contract closed with a gain of around 80 points from its previous close.

The downtrend in the Nifty March month 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 Friday’s trading.

Stock Futures

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Hindalco and BHEL interchanged their position.

Except Reliance Energy, Tata Steel, Hindalco and Infosys all other counters in the top-10 list are in downtrend.

The uptrend counter Tata Steel is likely to be under threat for Friday’s trading. On the other hand, bull move on Friday is likely to terminate NTPC and BHEL.

Buying opportunities are likely to exist in NTPC and BHEL. Selling opportunities are likely to exist in Reliance Energy and Tata Steel. The best among the above is likely to be buying in NTPC. This counter is in downtrend. Bull move on Friday is likely to reverse the existing trend in this counter.

Cash segment

The composition of the top-10 list had no changes.

However, the ranking of the top-10 list had minor changes. Reliance Capital and Reliance Energy interchanged their position.

Except Reliance Energy, BHEL and HDFC all other counters in the top-10 list are in downtrend.

The uptrend counter 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 and SAIL.

Buying opportunities are likely to exist in Reliance Industries and SAIL. Selling opportunities are likely to exist in Reliance Energy and BHEL.

The best among the above is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Friday 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.

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