The Hindu Business Line : Bears prevail

The sentiment reading of the tradable counters continues to remain bullish. Further bear pressure on Tuesday is likely to change the sentiment reading in their favour.

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Nifty futures recommendation: During the open of Monday's trading, the September contract registered a freak low of 1634.00. The next registered low of 1721.60 and this has been considered as day's low for our analysis. The September contract registered an intra-day high of 1738.40. It closed with a loss of five points with respect to Friday's close.

The long position in the September contract remains intact. The exit and bearish trigger levels are still placed far away. In the normal course of trading on Tuesday, these levels are unlikely to be triggered.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list underwent a change. State Bank and Reliance interchanged their positions.

Except for the downtrend in Maruti, all the other counters in the list are likely to be under threat. Selling opportunities are likely to exist in four counters. Buying opportunities are likely to exist in three counters. The best bet for Tuesday's trading is likely to be the selling in Satyam. The exit and bearish trigger levels for this counter are placed closer to its current level. Bear move on Tuesday is likely to reverse the prevailing uptrend in Satyam.

Cash segment: The composition as well as the ranking of the top-10 tradable list remains intact. Monday's market action resulted in triggering the uptrend in the recommended counter-SAIL.

Bear move on Tuesday is likely to terminate most of the uptrend counters in the tradable list. On the other hand, the downtrend in Satyam is likely to be under threat. Bears are likely to have opportunity in four counters. A lone buying opportunity is likely to exist in Infosys. Selling in Reliance is likely to be the best for Tuesday's trading. This counter is in the uptrend. Bear domination on Tuesday has the potential to reverse the prevailing uptrend 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.