Friday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters changed to bullish.

Bear move on Monday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment reading is likely to be strengthened with additional counters.

The November month contract opened with a bull gap of around 74 points from its previous close. The contract moved within a range of around 137 points and closed with a gain of around 84 points from its previous close.

The short position in the Nifty November Month contract is intact. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Monday’s trading activity.

The composition and the ranking of the top-10 list had minor changes. ICICI Bank, Bank of India, BHEL and Hindalco made their ways to top-10 list pushing out Ranbaxy, Satyam, Andhra Bank and Maruti. Reliance Capital moved from third to first position in the top-10 list. The long exit level for Satyam is placed at 412.95. The short exit level for Maruti is placed at 1001.80.

Reliance Capital, Reliance Energy, Reliance Industries, SBI and Hindalco are in uptrend in the top-10 list. IDBI, NTPC, ICICI Bank, Bank of India and BHEL are in downtrend in the top-10 list. The uptrend counters SBI and Hindalco are likely to be under threat for Monday’s trading. Bull move on Monday is likely to terminate all the downtrend counters except Bank of India. Buying opportunities are likely to exist in IDBI, NTPC, ICICI Bank and BHEL.

Selling opportunities are likely to exist in SBI and Hindalco. The best among the above is likely to buying in ICICI Bank. This counter is in downtrend. Bull move on Monday is likely to reverse the trend in this counter.

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Energy and Reliance Capital interchanged their positions. IDBI and SAIL interchanged their positions.

Except ICICI Bank, BHEL, ONGC and IDBI all other counters in the top-10 list are in uptrend. Except Reliance Industries and Reliance Energy all other uptrend counters are likely to be under threat for Monday’s trading.

Bull move on Monday is likely to terminate ICICI Bank and BHEL. Buying opportunities are likely to exist in ICICI Bank and BHEL. Selling opportunities are likely to exist in Reliance Capital, SBI, Infosys and SAIL. The best among the above is likely to be selling in Infosys. This counter is in uptrend. Bear move on Monday is likely to reverse the 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.

© Copyright 2000 - 2009 The Hindu Business Line