Date:30/05/2006 URL: http://www.thehindubusinessline.com/2006/05/30/stories/2006053004171500.htm

Back Volatile movement

K. Premkumar

Monday's trading activity witnessed volatile movement. However the sentiment reading of the tradable counters remained 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.

Nifty futures

The June month contract gapped up by 18 points and went further by 25 points. However bulls could not capitalise on their initial momentum and succumbed to bear pressure. The June month contract moved with in a range of around 75 points and closed around its previous level.

The long position in June contract continuous with exit placed at 3147.95 locking a decent profit of 17 points. Short entry and long exit levels are placed quite closer to its last traded price. In the normal course of Tuesday's trading these levels are likely to be triggered.

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Stock futures

The composition of the top-10 tradable list had no changes. However the ranking of the list had a total revamp. Hindalco moved to the top position followed by Reliance Industries and Bajaj Auto. BHEL and ACC interchanged their positions. The top-3 tradable counters in this segment were Tata Steel, Reliance and Hindalco. All the counters in the top-10 tradable list are likely to be terminated during Tuesday's trading.

There are ample numbers of selling opportunities and there is a lone buying opportunity exists in Reliance Industries for Tuesday's trading. The best is likely to be selling in BHEL. This counter is in uptrend. Bear pressure on Tuesday is likely to reverse the existing trend in this counter.

Cash segment

The composition and ranking of the top-10 tradable list had minor changes. Infosys went out of the list and gave way to Gujarat Ambuja Cement. Tata Steel moved to the second position followed by Maruti and ONGC. All the uptrend counters in the list are likely to be under threat for Tuesday's trading. The downtrend counters Reliance Industries and VSNL are also likely to be under threat. There are five opportunities on the sell side and tow opportunities on the buy side. The best bet for Tuesday's trading is likely to be selling in Maruti. Bear move on Tuesday is likely to reverse 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.