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K. Premkumar

MARKET remained indecisive for the third successive trading day on Monday. Bulls managed to gain marginally from the day's trading. The market sentiment reading stands mildly in favour of the bulls. Bear domination on Tuesday is likely to change the sentiment in their favour. On the other hand, the prevailing sentiment is likely to continue with added strength.

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Nifty futures recommendation: The near month May contract moved within a close band of 7 points. Neither the bulls nor the bears could gain much from the day's trading. The May contract closed around Friday's close. The sideways trend in the May contract remained undisturbed. Bullish and bearish trigger levels remain unchanged and these levels are equally poised from its closing value. Bulls and bears have a fair chance to prove their strength on Tuesday.

Stock futures recommendation: BHEL gained entry to the top-10 tradable list with the exit of Tata Engg. However, the ranking of the list remained unchanged. Digital was the most active counter in this segment followed by Satyam Computer and Hindustan Petro. The exit level for the long position in Tata Engg is placed at Rs 132.55.

Except for the uptrend in Digital all the other counters in the tradable list are likely to be under threat. Bears are likely to have opportunity in BPCL, Reliance Industries and State Bank. Buying opportunities are likely to exist in Ranbaxy, Satyam Computer and State Bank.

The best among them is likely to be the selling in State Bank. The counter is in the sideways mode. Its sell level is placed quite closer to its last traded price. Bear domination on Tuesday is likely to initiate a fresh downtrend in this counter.

Cash segment: The composition of the top-10 tradable counters had a change. Aftek Infosys regained entry with the exit of Wipro. The ranking of the list remained the same with no major changes.

Bear domination on Tuesday is likely to terminate the uptrend in Geometric Soft and Polaris Soft. On the other hand, the downtrend in Infosys and Satyam Computer is likely to be under threat. A lone opportunity is likely to exist on either side of trading. On the long side it is likely to exist in Satyam Computer and on the short side in Geometric Soft. Between the two, the best is likely to be the selling in Geometric Soft. Its bearish trigger level is placed closer to its current level. Bear move on Tuesday is likely to trigger this level.

(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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