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K. Premkumar

BEARS were in total command of Friday's trading activity. Their dominance for the second successive trading day left the bulls stranded. The market sentiment reading of the tradable counters stands strongly bearish with no uptrend counters.

Irrespective of bull or bear domination on Monday, the prevailing bearish sentiment is likely to continue with a slight change in its value.

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Nifty Futures Recommendation: The November month contract moved within a band of 32 points. Bears were in total control of the day's proceedings leaving the bulls with no opportunity to recover. The November contract closed with a loss of 27 points with respect to Thursday's close.

Bear move during the day led to the initiation of the downtrend in the November contract. In the normal course of trading on Monday, the initiated downtrend is likely to continue. The exit and bullish trigger levels for the November contract are placed at a far away level.

Stock Futures Recommendation: There were no new entries or exits to the top 10 tradable list. The ranking of the list had some changes. Satyam Computer moved to second position while State Bank of India (SBI) moved to sixth position.

The top three traded counters in this segment were Satyam Computer, Tata Steel and Reliance Industries.

All the counters in the list are in the downtrend. For Monday, the downtrend in Reliance Industries, State Bank and Tata Power is likely to be under threat.

Strong bear pressure prevailing in the market has placed the entry levels for all the counters at a far away level. Buy level for Reliance Industries is the nearest entry level among the tradable counters.

Cash Segment: The composition as well as the ranking of the top 10 tradable list remains unchanged. Except for Reliance Industries, all the counters in the list are in the downtrend. Bull domination on Monday is likely to terminate the downtrend in Oriental Bank and SBI.

Traders are left with a lone opportunity for Monday's trading. This is likely to exist on the short side of Reliance Industries. This counter is in the sideways mode. Its sell level is placed very close to its last traded price. Bear pressure on Monday 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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