The Hindu Business Line : Bears prevail

BEARS maintained their pressure over Tuesday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull domination on Thursday is likely to change the sentiment reading to bullish.

Otherwise, the prevailing bearish sentiment is likely to be further strengthened.

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Nifty futures recommendation: During the open, the October month contract gained around 10 points. Bulls failed to capitalise on it as they succumbed to bear pressure. The October contract moved within a band of 36 points. It closed with a loss of 23 points with respect to Monday's close.

The short position in the October contract remains intact. Exit level for the short position is placed slightly away from its current level. Bullish trigger level for the October contract remains unchanged.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable counters remain unchanged. Tata Steel, Infosys and Reliance were the top three traded counters in this segment for Tuesday.

Bull pressure on Thursday could be a threat to the downtrend in Maruti and Ranbaxy. On the other hand, the uptrend in Infosys and Satyam are likely to be terminated. Selling opportunities are likely to exist in four counters. Buying opportunities are likely to exist in three counters. Selling in Satyam is likely to be the best for Thursday's trading. Bearish trigger level for this counter is placed within a rupee from its closing value. Bear pressure on Thursday is likely to reverse the prevailing uptrend in Satyam.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list too remains the same with no major changes. Bears were successful in initiating the downtrend in the recommended counter-ONGC.

Except for the downtrend in State Bank and Tata Steel, all the other counters in the list are likely to be under threat. Bears are likely to have opportunity in four counters. A lone buying opportunity is likely to exist in ONGC.

Selling in Satyam is likely to be the best bet for Thursday's trading. This counter is in the uptrend. The exit and sell levels for this counter is placed quite closer to its current level. Bear move on Thursday has the potential to trigger the downtrend in Satyam.

(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.