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K. Premkumar

BULLS managed to recover during the opening of Monday's trading. Later on, the bears came back strongly and wiped out their losses. The sentiment reading of the tradable counters stands neutral. Thus favouring neither the bulls nor the bears. Bear domination on Tuesday is likely to change the sentiment in favour of the bears. Otherwise, it is likely to remain the same with a slight change in its value.

Nifty futures recommendation: The near month January contract opened with a bull gap of 4 points. But could not capitalise on it as they yielded to bear pressure. Bears wiped out their early losses and gained handsomely from the day's trading. The movement in the January contract was around 20 points. It closed with a loss of 13 points with respect to Friday's close.

Initial bull move exited the downtrend in the January contract. The short trade exited with a loss of 8 points. Re-entry level for the bears is placed very close to its current level. Bear pressure on Tuesday is likely to reinstate the downtrend in the January contract. Bullish trigger level remains unchanged.

Stock futures recommendation: The composition and the ranking of the top-10 tradable counters remained undisturbed. Satyam Computer remains as the top traded counter in stock futures segment followed by Infosys and Reliance Industries.

Bull domination on Tuesday could be threat to the downtrend in ACC and Tata Engg. The prevailing uptrend in Digital and Reliance Industries is likely to be under threat from the bears. Traders holding positions in the above counters will have to closely monitor their price movements.

There is unlikely to exist any buying opportunities for the bulls. Selling opportunities are likely to exist in Digital, Infosys, Reliance Industries and Reliance Petro. The best among them is likely to be Infosys. This counter is presently in the sideways mode. Its sell level is placed quite closer to its last traded price. Bear move on Tuesday is likely to initiate a fresh downtrend in this counter.

Cash segment: There were no new entries or exits to the top-10 tradable counters in the cash segment. The ranking of the list underwent a few changes. HCL Tech moved to the seventh position followed by Polaris Soft and NIIT.

Bear domination is likely to terminate the lone uptrend counter - Digital. On the other hand, the downtrend in HCL Tech is likely to be under threat. Bears are likely to have opportunities in Digital, Infosys, Polaris Soft, Satyam Computer and Zee Tele. On the other hand, a lone buying opportunity is likely to exist in Zee Tele. Selling in Infosys is likely to be the best. This counter is in the sideways trend. Bear pressure on Tuesday is likely to initiate the downtrend 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 Chennai-based technical analyst and fund management consultant.

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