Back Volatile movement
K. Premkumar
BEARS were in charge of the initial hours of Monday's trading activity. The day's market action resulted in increasing the bear count by a considerable margin.
The sentiment reading of the tradable counters stands bearish. Bull pressure on Tuesday is likely to turn the sentiment reading bullish. Otherwise, the prevailing bearish sentiment is likely to continue with a slight change in its value.
Nifty Futures Recommendation: During the initial hours of Monday's trading, the January month contract shed around 32 points. Later on, bulls came back strongly and took charge of the day's proceedings. The January contract moved within a band of 47 points. It closed higher with a gain of around 10 points.
The short position in the January contract remains intact. The short position is locked up with a profit of 79 points. The exit and bullish trigger levels for the January contract are still placed far away. These levels are unlikely to be triggered on Tuesday.
Stock Futures Recommendation: There were no new entries or exits to the top-10 tradable list. The top three traded counters in this segment were Tata Steel, TCS and ACC.
None of the counters in the list are in the uptrend. Except for the downtrend in Ranbaxy and Satyam, all the other counters in the list are likely to be under threat. Selling opportunities are unlikely to exist for Tuesday's trading. Buying opportunities are likely to exist in five counters. The best is likely to be the buying in Infosys. The buy level for this counter is placed quite close to its current level. The bull move on Tuesday is likely to trigger the uptrend in Infosys.
Cash Segment: The composition of the top-10 active counters list remains intact. The ranking of the list too remains unchanged. The bull move on Tuesday is likely to terminate most of the downtrend counters in the list. On the contrary, the lone uptrend counter — Canara Bank is likely to be under threat. Bears are unlikely to have any opportunity for Tuesday's trading.
Buying opportunities are likely to exist in four counters. The best bet is likely to be buying in Infosys. This counter is in the sideways mode. The bullish trigger level for this counter is placed very close to its last traded price. Bull pressure on Tuesday is likely to initiate a fresh uptrend in Infosys.
(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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