Date:25/11/2006 URL: http://www.thehindubusinessline.com/2006/11/25/stories/2006112503541500.htm

Back Volatile movement

K. Premkumar

Friday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to neutral. Bull move on Monday is likely to change the sentiment reading to bullish.

On the other hand, it may likely to turn to bearish.

Nifty Futures

The November contract opened around its previous close. The November contract moved within a range of around 32 points, touching an intra-day high of 3,969. The November contract closed with a gain of around two points from the previous close. The long position in the November month contract exited and entered short.

The short exit and long entry 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 trading on Monday.

Stock Futures

The composition of the top 10 tradable counters had no changes. However, the ranking had minor changes. Tata Steel moved up to fourth position, while ONGC moved down to last position.

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Except Tata Steel, which is in sideways mode, all other counters are likely to be under threat for Monday's trading. There are six opportunities on the bull side and three opportunities on the bear side for Monday's trading.

The best bet is likely to be selling in Century Textiles. This counter is in uptrend. Bear move on Monday has a potential to trigger the short entry level in this counter.

Cash Segment

The composition and ranking of the top 10 tradable list had minor changes. ONGC gave way to Tata Steel.

Zee Tele moved up to seventh position from eighth position. The long level for Tata Steel and ONGC are placed at 470.10 and 847.45 respectively.

There are five uptrend and four downtrend counters in the top 10 tradable list. The five uptrend counters are likely to be under threat for Monday's trading.

On the other hand, the four downtrend counters are likely to be terminated.

There are five opportunities on the buy side and four on the sell side for Monday's trading. The best is likely to be buying in ACC. This counter is in downtrend. Bull move on Monday 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.