The Hindu Business Line : Volatile movement

Trading activity witnessed volatile movement on Friday. The sentiment reading of the tradable counters remains bullish. Bear pressure on Monday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures: The April month contract opened with a bull gap of around 15 points. April contract moved within a range of around 79 points making an intra-day low of 3,518. It closed around its previous close.

The long position in the April month contract exited with a profit of 134 points. It entered short in the morning session. The short exit and buy levels are placed quite nearer to its last traded price. In the normal course of trading, these levels are likely to be triggered during Monday.

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Stock futures: The composition and the ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Satyam, Tata Steel and MTNL.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Monday's trading. On the other hand, two downtrend counters are likely to be terminated. There are three opportunities on the buy side and four opportunities on the sell side. The best is likely to be selling in REL. This counter is in uptrend. Bear pressure on Monday is likely to trigger the downtrend in this counter.

Cash segment: The composition of the top-10 tradable list remains unchanged. However, the ranking of the list had minor changes. Infosys moved down to fourth position and Reliance moved up to second position. VSNL and Tata Steel interchanged their positions.

All the uptrend counters in the top 10 tradable list are likely to be under threat for Monday's trading. On the other hand, SAIL is likely to be terminated. There is a lone opportunity on the bull side and three opportunities on the bear side. The best is likely to be buying in SAIL. This counter is in downtrend. Bull pressure on Monday 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.