The Hindu Business Line : Volatile movement

Wednesday's trading activity witnessed a volatile movement. The sentiment reading of the tradable counters remains bearish. Bull move on Thursday 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 December month contract opened with a bear gap of around 34 points from its previous close. The December contract moved within a range of around 121 points making an intraday low of 3764. The December month closed with a loss of around 29 points from its previous close.

The short position in the December contract remains intact. The short exit and long entry levels are placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during trading on Thursday.

STOCK FUTURES

The composition of the top-10 tradable counters had no changes. However, the ranking of the list had minor changes. NTPC and Reliance capital interchanged their positions. The top-3 tradable counters in this segment were Reliance communications, Reliance Industries and Century Tex.

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There are eight downtrend counters in the top-10 tradable list. Reliance Industries, Tata Steel, NTPC and Reliance capital are likely to be under threat for Thursday's trading. There are ample buying opportunities and two selling opportunities for Thursday's trading. The best is likely to be selling in Bank of India. This counter is in side ways mode. Bear move on Thursday is likely to initiate a fresh downtrend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. i-flex, Tata Motors and ACC moved up while Satyam moved down in the ranking.

Except i-flex all other counters are in downtrend. Reliance Industries, Tata Steel, Infosys and BHEL are likely to be terminated during Thursday's trading. There are four buying opportunities in the list. The best is likely to be buying in Infosys. This counter is in downtrend. Bull move on Thursday 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.