The Hindu Business Line : Sideways movement

Thursday's trading activity witnessed sideways movement. The sentiment reading of the tradable counters changed to neutral. Bull move on Friday is likely to change the sentiment reading to bullish. On the other hand, it may likely to turn bearish.

NIFTY FUTURES

The December month contract opened with a bull gap of around 18 points from its previous close. The December month contract moved within a range of around 36 points making an intraday high of 4004.40. The December month contract closed with a loss of around nine points from its previous close.

The December month contract exited due to expiry. The long entry level is placed quite far away and the short entry level is placed quite nearer to its last traded price. Bear move on Friday is likely to initiate a fresh downtrend in January month contract.

STOCK FUTURES

The composition of the top-10 tradable list remained unchanged. However, ranking of the list had minor changes. Bank of India and i-flex moved up and occupied fifth and sixth positions respectively while ACC moved down and occupied seventh position. The top-3 tradable counters in this segment were Reliance Industries, Centex and Tata Steel.

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All the counters are exited due to expiry. Fresh entry levels are given for January month contract. There are ample opportunities on either side for Friday's trading. The best among them is likely to be selling in Reliance Capital. This counter is in sideways mode. Bear move on Friday is likely to initiate a fresh downtrend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list remained unchanged. However, the ranking had minor changes. BHEL and Satyam moved up and occupied sixth and ninth positions respectively while Infosys and ACC occupied seventh and tenth positions respectively.

There are five downtrend and four uptrend counters in the list. All the counters are likely to be under threat for Friday's trading. There are equal number of opportunities on both the sides of trading. The best among them is likely to be selling in SBI. This counter is in sideways mode. Bear move on Friday is likely to initiate a fresh downtrend in SBI.

(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.