Date:03/01/2006 URL: http://www.thehindubusinessline.com/2006/01/03/stories/2006010302871500.htm

Back Volatile movement

K. Premkumar

MONDAY'S market witnessed volatile movement. The sentiment reading of the tradable counters remains bullish.

Bear domination on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

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Nifty futures recommendation: The January month contract opened with a bear gap of around two points. The January month contract moved within a range of around 32 points making an intraday high of 2,836.70. It closed with a gain of around one point from its previous close.

The long position in the January month contract remains intact. The exit and sell 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 Tuesday's trading.

Stock futures recommendation: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Motors moved up to seventh position and Satyam moved down to eighth position. The top three tradable counters in this segment were ICICI, State Bank and Reliance.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. On the other hand, both the down trend counters in the list are likely to be terminated. There are three opportunities on the buy side and ample opportunities on sell side. The best for Tuesday's trading is likely to be buying in ONGC. This counter is in down trend. Bull move on Tuesday is likely to reverse the existing trend in this counter.

Cash segment: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. State Bank and Reliance Capital interchanged their positions.

There are no down trend counters in the list. All the uptrend counters in the top-10 tradable list are likely to be terminated during Tuesday's trading. There are two opportunities on the buy side and ample opportunities on sell side. The best is likely to be selling in Tata Motors. This counter is in side ways mode. Bear pressure on Tuesday is likely to initiate a fresh down 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.