Back Volatile movement
K. Premkumar
THURSDAY'S market witnessed unbalanced movement but the sentiment reading of the tradable counters remains bullish. Bear control on Friday is likely to alter the outlook in their favour.
On the contrary, the prevailing bullish sentiment is likely to be further fortified.
Nifty Futures recommendation: The January month contract opened with a bull breach of around 9 points. The January contract moved with in a range of around 31 points recording intra-day high of 2899. It closed with a loss of around 7 points from its earlier close.
The long position in the January contract exited with a profit gaining of around 59 points. The entry levels are placed quite far away from its last traded price.
In the normal course of trading, the entry level is unlikely to be triggered.
Stock futures recommendation: The composition and the ranking of the top-10 tradable list had no changes. The top three tradable counters in this segment were Reliance, Satyam and State bank.
All the uptrend and down trend counters in the top-10 tradable list are likely to be under threat for Friday's trading.
There are ample opportunities on both the sides of trading.
The best for Thursday's trading is likely to be selling in Tata Motors. This counter is in side ways mode. Bear move on Friday is likely to initiate a fresh down trend in this counter.
Cash segment: The composition and the ranking of the top-10 tradable list had no changes. All the uptrend counters in the top-10 tradable list are likely to be terminated during Friday's trading.
There are five opportunities on the buy side and ample opportunities on the sell side.
The best is likely to be selling in Reliance. This counter is in up trend. Bear force on Friday is likely to change 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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