The Hindu Business Line : Volatile movement

TRADING activity was quite volatile on Monday. Bears gained from the day's trading activity. The sentiment reading of the tradable counters remains bearish. Bull move on Tuesday is likely to reduce the bear count by a substantial margin thereby having the potential to change the sentiment reading to bullish.

Nifty futures recommendation: The near month November contract opened with a bear gap of 5 points and went further down by another 11 points. Thereafter, bulls made a strong comeback and recovered their losses. The November contract moved within a band of 28 points. It closed with a gain of eight points with respect to Friday's close.

The downtrend in the November contract remains intact. However, this is likely to be under threat for Tuesday. Bullish trigger level for the November contract is also placed quite closer to its current level. Bull domination on Tuesday has the potential to reverse the prevailing downtrend in the November contract.

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Stock futures recommendation: Reliance, Tata Steel and State Bank were the top three traded counters in this segment. Monday's market activity triggered the downtrend in the recommended counter — Tata Motors.

Most of the counters in the list are in the downtrend. Bull pressure on Tuesday is likely to terminate most of the downtrend counters in the list.

On the other hand, the lone uptrend counter Satyam is likely to be under threat. Buying opportunities are likely to exist in as much as seven counters. A lone selling opportunity is likely to exist in CNX IT. Buying in Ranbaxy is likely to be the best for Tuesday. This counter is in the downtrend. Bull pressure on Tuesday has the potential to reverse the prevailing downtrend in Ranbaxy.

Cash segment: Bears were successful in initiating the downtrend in the recommended counter State Bank. Except for Maruti, all the other counters in the list are likely to be under threat. Bears are unlikely to have any opportunity for Tuesday's trading. Buying opportunities are likely to exist in six counters.

The best bet is likely to be the buying in Wipro. This counter is in the sideways mode. Bullish trigger level for this counter is placed quite closer to its closing price. Bull move on Tuesday is likely to trigger the uptrend in Wipro.

(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.