The Hindu Business Line : Bear domination

THE sentiment reading of the tradable counters stands absolutely bearish with no uptrend counters. Bull domination on Tuesday is likely to neutralise the sentiment reading. Otherwise, the prevailing bearish sentiment is likely to continue with a slight change in its value.

Nifty futures recommendation: During the opening of Monday's trading, the June contract gained seven points. Thereafter, bears gained control of the day's trading. The June contract moved within a band of 36 points. It closed with a loss of 19 points with respect to Friday's close.

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The downtrend in the June contract remains intact. In the normal course of trading on Tuesday, the downtrend is unlikely to be disturbed. The short position in the June contract is locked-up with a nominal profit of 17 points. The exit and bullish trigger levels are placed quite far away.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list too remains unchanged. Bull domination on Tuesday could be a threat to seven of the downtrend counters in the list.

A lone opportunity is likely to exist for Tuesday's trading. This is likely to exist on the long side of M&M. The exit and buy levels for this counter is placed closer to its current level. Bull move on Tuesday is likely to trigger the uptrend in M&M.

Cash segment: The composition as well as the ranking of the top-10 tradable list remains unchanged. Monday's market action resulted in triggering the downtrend in ONGC.

Bull pressure on Tuesday is likely to terminate most of the prevailing downtrend counters in the tradable list. Traders are left with a lone opportunity for Tuesday's trading. This is likely to exist on the long side of Reliance. This counter is in the downtrend. The exit and bullish trigger levels for this counter placed quite closer to its last traded value. Bull domination on Tuesday has the potential to reverse the prevailing downtrend in Reliance.

(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 technical analyst and fund management consultant.