The Hindu Business Line : Bears regain

THE sentiment reading of the tradable counters turned bearish. Bull domination on Monday is likely to neutralise the sentiment reading. On the other hand, it is likely to continue with the added strength.

Nifty futures recommendation: Friday's market action resulted in bears regaining their lost ground. The May month contract opened bearish with a down gap of four points. The intraday movement was around 38 points. It closed with a loss of 38 points from the previous close.

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The bear domination on Friday resulted in reversal of the uptrend in May contract. Both the exit and bullish levels are placed quite far away. These levels are unlikely to be triggered on Monday if the bears continue to hold their sway on Monday.

Stock futures recommendation: The composition and the ranking of the top-10 tradable list underwent changes. ACC gained entry in place of Maruti. The ranking of the list had a minor change with Reliance Industries and Satyam Computer interchanging their rankings.

The top three traded counters in the list are Tata Steel, Tata Motors and Maruti. Trading activity in GAIL was hectic with 5,328 trades on Friday.

Bear domination on Monday is likely to terminate the lone uptrend counter GAIL. Except for the downtrend in Tata Steel, all the other downtrend counters in the list are likely to be under threat. Infosys, ONGC and State Bank are likely to have buying opportunities for Monday. Selling opportunities are likely to exist in five counters in the tradable list.

The best among the above is likely to be the selling in ONGC. The counter is in sideways. Bear pressure on Monday is likely to initiate fresh downtrend in ONGC.

Cash segment: The composition and the ranking of the list had changes. Canara Bank gained entry in place of GAIL. State Bank moved up to sixth position while ONGC moved down to seventh position.

Bear domination on Monday is likely to terminate the uptrend in Canara Bank. The downtrend counters Infosys, Satyam Computer, State Bank and Union Bank are likely to be under threat for Monday. Buying opportunities are likely to exist in ONGC, Reliance Industries and State Bank. ONGC, Reliance Industries and Tata Motors are likely have selling opportunities.

The best among them is likely to be selling in ONGC. Bear domination on Monday is likely to trigger 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.