FUTURES & DYNAMIC TREND REPORT

Date: 29 October 2026

Executive Summary

The broader futures market continues to display a bearish undertone, with bearish positions significantly exceeding bullish positions. While the overall market structure remains weak, a select group of stocks continues to demonstrate strong relative strength (RS) and trend quality, presenting focused opportunities on the long side.

A. Futures Positioning Analysis

Open Interest Classification

Source: 29102026.xlsx

Market Breadth

• Bullish Signals: 181 (Long Position + Short Covering)
• Bearish Signals: 243 (Short Position + Unwinding Long)
• Bullish Percentage: 42.69%
• Bearish Percentage: 57.31%
• Net Difference: −62 stocks

Overall Futures Market Bias: BEARISH

The higher number of short positions and long unwinding signals suggests that market participants remain cautious. Fresh buying appears limited, while profit-booking pressure continues to dominate the futures market.

B. Dynamic Trend Futures Analysis

Based on Dynamic Trend Stock Futures 2902026.pdf.

Top 3 Conviction Picks

1. Laurus Labs Ltd.

• Strong relative strength
• Strong trend quality
• Favourable risk structure
• Beneficiary of the pharmaceutical growth theme

2. Sona BLW Precision Forgings Ltd.

• Strong relative strength
• Established presence in manufacturing and auto components
• Attractive trend-continuation setup

3. Divi’s Laboratories Ltd.

• High-quality pharmaceutical company
• Strong trend structure
• Favourable risk-adjusted profile

These stocks have been identified as the highest-conviction opportunities in the report.

C. Sell Framework

Strongest Sell Candidate

Swiggy Ltd.

The report identifies Swiggy as the clearest technical sell candidate in the current setup.

Sell-on-Rise Candidates

• Coal India Ltd.
• Tata Power Company Ltd.

These stocks remain potential sell-on-rise candidates as long as key resistance levels remain intact.

Stocks Requiring Caution on the Short Side

• Kaynes Technology India Ltd.
• Pidilite Industries Ltd.

Although technical weakness is evident, both companies have strong underlying business profiles. Aggressive short positions are therefore discouraged in the report.

D. Dynamic Trend Framework

Uptrend Rules

• Buy above the Demand Point (DP).
• Hold the position while the price remains above the Dynamic Reference Value (DRV).
• Weak Below (WB) acts as a support and stop-loss reference.
• Exit if the closing price falls below the DRV.

Downtrend Rules

• Sell below the Demand Point (DP).
• Hold the short position while the price remains below the DRV.
• Strong Above (SA) acts as a resistance and stop-loss reference.
• Exit if the closing price rises above the DRV.

These rules form the core of the Dynamic Trend Futures methodology.

E. VGI Framework: Market View

Market Condition

Broad Market: BEARISH

Preferred Long Exposure

• Laurus Labs Ltd.
• Divi’s Laboratories Ltd.
• Sona BLW Precision Forgings Ltd.

Preferred Sell-on-Rise Candidates

• Swiggy Ltd.
• Coal India Ltd.
• Tata Power Company Ltd.

Trading Approach

• Prefer selective, stock-specific long positions.
• Avoid aggressive, broad-based long exposure.
• Continue to favour stocks with strong relative strength for fresh buying, subject to technical confirmation.
• Maintain discipline on stop-loss levels in accordance with the Dynamic Trend framework.
• Treat bearish breadth as the dominant market signal until bullish signals exceed bearish signals.

Final Conclusion:

• Futures Positioning: Bearish, with 57.31% bearish signals
• Bullish Signals: 181
• Bearish Signals: 243
• Top Conviction Buys: Laurus Labs Ltd., Divi’s Laboratories Ltd. and Sona BLW Precision Forgings Ltd.
• Top Sell Candidate: Swiggy Ltd.
• Market Stance: Defensive, with selective buying

Overall Assessment: MODERATELY BEARISH MARKET WITH STOCK-SPECIFIC OPPORTUNITIES.