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K. Premkumar

BEARS gained control of Monday's trading activity. Bulls were unable to make any impact during the day's trading.

Monday's market action resulted in terminating most of the uptrend counters. The market sentiment reading of the tradable counters stands neutral. Further bear pressure on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing sentiment is likely to continue with a slight change in its value.

Nifty futures recommendation: The near-month October opened with a bear gap of five points and went further down by another 32 points. Bears were in total command of the day's proceedings. The October contract closed with a loss of 34 points with respect to previous close.

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Bear domination during the day led to the reversal of the uptrend in the October contract. The long trade exited with a loss of 13 points. The initiated downtrend is likely to continue on Tuesday. The exit and bullish trigger levels for the October contract are placed quite far away.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of list had a minor change. Hindustan Petro and M&M interchanged their positions. Trading activity in Hindalco was quite hectic with more than 3,200 trades.

Bear pressure on Tuesday could be a threat to the prevailing uptrend counters in the list. The prevailing downtrend counters in the list are likely to be safe. Bulls are unlikely to have any opportunity for Tuesday's trading. Selling opportunities are likely to exist in Infosys, M&M, Ranbaxy and Reliance Industries. The best bet for Tuesday's trading is likely to be Infosys. This counter is in the sideways mode. Its bearish trigger level is placed very close to its last traded price. Bear pressure on Tuesday is likely to trigger these levels.

Cash segment: The composition of the top-10 tradable list underwent a change. M&M gained entry with the exit of Hindustan Petro. The ranking of the list had some changes. Digital moved to the eighth position and SCI to the ninth position.

Except for the uptrend in Satyam Computer, all the other counters in the list are likely to be safe. Buying opportunities are unlikely to exist for Tuesday's trading. Selling opportunities are likely to exist in Digital and State Bank. Between the two, the best is likely to be Infosys. Its sell level is placed closer to its current level. Bear move on Tuesday is likely to initiate a fresh 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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