The Hindu Business Line : Volatile movement

Thursday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters turned to sideways. Bull move on Thursday is likely to change the sentiment reading in their favour. On the contrary, the sentiment reading is likely to turn bearish.

Nifty futures: The July month contract opened with a bull gap of around 20 points from its previous close. However, bulls were not able capitalise on their initial move. The July month contract moved within a range of around 50 poi nts. The July month contract closed with a loss of 3 points from its previous close.

The short position in the July Month Nifty Future contract is exited due to the contract expiration. Fresh entry levels are given in the August month contract. The buy level is placed quite nearer to its last traded price and the sell level is placed quite far away. The buy level is likely to be triggered during Friday’s trading activity.

Stock futures: The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Industries and Tisco interchanged their positions and Reliance Energy and ACC interchanged t heir positions.

All existing position in the July Month stock future contracts exited due to contract expiration. All the fresh entry levels are given in the August month contract. Both bulls and bears have ample opportunities for Friday’s trading. The best among the above is likely to be buying in Reliance Energy. Bull move on Friday is likely to initiate a fresh up trend in this counter.

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Cash segment: The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 tradable list had minor changes. SAIL and ACC interchanged their positions. Reliance Energy and State Bank interchanged their positions. Reliance Capital occupies seventh position and IDBI moved to eighth position.

There are six downtrend and four uptrend counters in the top-10 tradable list. Reliance Industries, Infosys, Reliance Capital and IDBI are in uptrend. Except ACC and Reliance Capital, all other counters are under threat for Friday’s trading. Buying opportunities are likely to exist in SAIL, Reliance Energy, State Bank, Satyam and Tisco. Selling opportunities are likely to exist in Reliance Industries, Infosys and IDBI. The best among the above is likely to be buying in State Bank. This counter is in downtrend. Bull move on Friday 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.