FRIDAY'S trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters turned bullish. Bear domination on Monday is likely to change the sentiment reading in its favour.
On the contrary, the prevailing bullish sentiment is likely to be strengthened.
Nifty futures: The December contract opened with a bull gap of around 21 points and went further up by 13 points. However, bulls could not capitalise their initial momentum and gave way to bears. December contract moved with in a range of around 43 points making an intra-day low of 2692.85. It closed with a gain of around nine points from its previous close.
The short position in the December contract reversed in the morning session. The exit level for the December contract is placed quite nearer to its last traded price. The exit level is likely to be triggered during Monday's trading.
Stock futures: The composition and ranking of the top-10 tradable counters had minor changes. Hindustan Lever and ONGC went out of the list and gave way to Ranbaxy and Reliance Energy.
Satyam and Tata Motors interchanged their positions. The exit levels for Hindustan Lever and ONGC are placed at 184.35 and 1052 respectively.
The top three tradable counters in this segment were Reliance Capital, VSNL and Reliance Industries.
All the uptrend counters in the list are likely to be under threat for Monday's trading. On the other hand, a lone downtrend counter Ranbaxy is likely to be terminated.
Five opportunities exist on either side of Monday's trading. The best for Monday's trading is likely to be buying in Reliance. This counter is in side ways mode. Bull pressure on Monday is likely to initiate a fresh uptrend in this counter.
Cash segment: The composition and ranking of the top-10 tradable list had minor changes. Tata Steel went out of the list and gave way for Tata Motors. Indiabulls and State Bank interchanged their positions. The long exit levels for Ranbaxy and Tata Steel are placed at Rs 389.95 and Rs 352.95 respectively.
All the uptrend counters in the list are likely to be terminated for Monday's trading. There are no downtrend counters in the list. There are two buying opportunities and five selling opportunities for Monday's trading.
The best for Monday's trading is likely to be selling in Indiabulls. This counter is in uptrend. Bear pressure on Monday 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.