The Hindu Business Line : Volatile movement

Thursday's trading activity witnessed volatile movement. However, the sentiment reading of the tradable counters remains bullish. Bear move on Friday is likely to change the sentiment reading to bearish.

On the other hand, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures

The September month contract opened with a bull gap of around 23 points from its previous close. The September contract moved within a range of around 26 points making an intra-day low of 3,456. It closed with a gain of around 14 points from its previous close.

The long position in the September contract remains intact and has locked a profit of around 60 points. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during trading on Friday.

Stock futures

The composition of the top-10 tradable counters had no changes. However, the ranking had a total revamp. Maruti moved up in the ranking and occupied first position while BHEL moved down and occupied fourth position. The top-3 tradable counters in this segment were Reliance, Satyam and Reliance Capital.

Most of the counters in the top-10 tradable list are in uptrend and are likely to be under threat for Friday's trading.

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On the other hand, the lone downtrend counter ONGC is likely to be terminated. There exist ample selling opportunities and a lone buying opportunity for Friday's trading.

The best is likely to selling in Tata Motors. This counter is in uptrend. Bear move on Friday is likely to trigger the downtrend in this counter.

Cash Segment

The composition and the ranking of the top-10 tradable list had no changes. Most of the counters in the top-10 tradable list are in uptrend. All the uptrend counters are likely to be under threat for Friday's trading.

On the other hand, the two downtrend counters are likely to be terminated. There are ample selling opportunities and two buying opportunities for Friday's trading.

The best is likely to be selling in ITC. This counter is in uptrend. Bear 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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