The Hindu Business Line : Bear domination

THE sentiment reading of the tradable counters stands bullish. Monday's market action resulted in triggering the downtrend in few counters. Further bear dominance on Tuesday is likely to change the sentiment reading in their favour. Otherwise, the prevailing sentiment is likely to continue with a slight change in its value.

Nifty futures recommendation: During the open, the April contract gained six points. Thereafter, bears took charge of the day's proceedings. The April contract moved within a band of 39 points registering an intra-day low of 1829.90. It closed lower with a loss of 31 points.

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Bear domination during the day led to the termination of the uptrend in the April contract. The long trade exited with a profit of 67 points. Bearish trigger level for the April contract is now placed closer to its current level. Bear pressure on Tuesday is likely to trigger the downtrend in the April contract.

Stock futures recommendation: There were no new entries or exits to the top-10 tradeable list. The ranking of the list underwent changes. State Bank moved to the second position followed by Tata Motors and ONGC. The exit level for the uptrend in Maruti is placed at 512.10.

Bulls were successful in initiating the uptrend in the recommended counter-Tata Steel. However, the exit level for the initiated long position is in the danger zone. Except for the downtrend in Infosys, all the other counters in the list are likely to be under threat. Buying opportunities are unlikely to exist for Tuesday's trading. Selling opportunities are likely to exist in six counters. The best bet is likely to be Satyam. This counter is in the uptrend and has closed at 312.85. Bear pressure on Tuesday is likely to reverse the prevailing trend in Satyam.

Cash segment: The composition of the top-10 tradeable list in this segment remains intact. The ranking of the list had some changes. ONGC moved to the third position and Maruti moved to the seventh position. The day's move resulted in triggering the downtrend in the recommended counter- Infosys.

Except for the downtrend in Infosys, all the other counters in the list are likely to be under threat. Bears are likely to have opportunity in as much as seven counters. On the other hand, buying opportunities are likely to exist in two counters. Selling in Satyam is likely to be the best for Tuesday's trading. This counter is in the uptrend. Its exit and sell levels are placed closer to its last traded value. Bear move on Tuesday has the potential 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.