K. Premkumar

Tuesday's trading activity witnessed a volatile movement. The sentiment reading of the tradable counters remains bearish. Bull move on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The February month contract opened with a bear gap of around 13 points from its previous close. The contract moved within a range of around 148 points making an intraday high of 4141. It closed with a gain of around 14 points from its previous close.

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The short position in the February contract remains intact. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during the normal course of trading during Wednesday.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Satyam gave way to Bajaj Auto. Bajaj Auto occupied tenth position in the ranking. Century Tex and Reliance Capital moved up in the ranking while Hindalco, ICICI and Reliance Industries moved down. The top-3 tradable counters in this segment were

IVRCL, Reliance Industries

and

Hindalco

. The short exit level for MTNL, IDBI and Satyam are placed at 145.55, 94.15 and 473.95 respectively.

Most of the counters in the top-10 tradable list are in downtrend. The downtrend counters Reliance Industries, SBI and ICICI are likely to be under threat for Wednesday's trading.

There are three buying opportunities for Wednesday's trading. The best among them is likely to be buying in

Reliance Industries

. This counter is in downtrend. Bull move on Wednesday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. IDBI, BHEL and Infosys moved up in the ranking while Satyam, Reliance Industries and SBI moved down. The short exit level for Suzlon and ICICI are placed at 1,147.85 and 988.95 respectively.

All the counters in the top-10 tradable list are in downtrend. Satyam, Infosys, SBI and Reliance Industries are likely to be under threat for Wednesday's trading. There are four buying opportunities for Wednesday's trading. The best among them is likely to be buying in

Reliance Industries

. This counter is in downtrend. Bull move on Wednesday is likely to reverse the prevailing 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.

(This article was published in the Business Line print edition dated February 14, 2007)
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