The Hindu Business Line : Bear run arrested

THE sentiment reading of the tradable counters stands bearish. Bull domination on Wednesday is likely to reduce the bear count by a considerable margin thereby neutralizing the sentiment reading. On the other hand, the prevailing bearish sentiment is likely to be further strengthened.

Nifty Futures Recommendation: The March contract continued their downside movement on Tuesday. During the fag end of the day's trading, bulls made a strong comeback and wiped out their day's losses. The March contract registered an intra-day low of 1726.20 after making a high of 1765.90. It closed with a loss of 6 points.

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Bears were successful in initiating the downtrend in the March contract. In the normal course of trading on Wednesday, the initiated short position is likely to continue. Bullish trigger level for the March contract is placed far away and is unlikely to be triggered on Wednesday.

Stock Futures Recommendation: There were no new entries or exits to the top-10 tradable list. Tata Steel moved to the top slot followed by Tata Motors. Bear move during the day triggered the downtrend in the recommended counter- State Bank. However, the exit level for the initiated short position is in the danger zone.

Nine out of the ten counters in the list are in the downtrend. Except for the downtrend in Tata Motors and Tata Power, all the other counters in the list are likely to be under threat. Entry levels for all the tradable counters are placed quite far away. The nearest entry level is on the long side of Satyam. This counter is the downtrend and has closed at 296.75. Bull domination on Wednesday has the potential to reverse the prevailing trend in this counter.

Cash Segment: The composition as well as the ranking of the top-10 tradable counters remains undisturbed. Tuesday's market action resulted in triggering the downtrend in the recommended counter-State Bank.

Most of the counters in the list are in the downtrend. Bull domination on Wednesday is likely to terminate six out of eight downtrend counters in the list. The lone uptrend counter-ONGC is likely to be safe.

Traders are left with a lone opportunity for Wednesday's trading. This is likely to exist on the short side of Infosys. This counter has closed at 4917.70. Its bearish trigger level is placed quite closer to its current level. Bear move on Wednesday 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.