The Hindu Business Line : Volatile movement

MONDAY'S trading activity witnessed volatile movement. The day's market action resulted in reducing the bull count considerably. The sentiment reading of the tradable counters stands neutral. Bull domination on Tuesday is likely to change the sentiment reading in their favour. On the other hand, it is likely to turn bearish.

Nifty futures recommendation: The December month contract opened with a bear gap of 10 points and went further down by another 10 points. Thereafter, bulls took charge of the day's proceedings. The December contract moved within a band of 35 registering an intra-day high of 2076.50. It closed one point below Friday's close.

The long position in the December contract survived the initial bear move. The exit and bearish trigger levels are placed at the same level. Bear domination on Tuesday has the potential to reverse the prevailing uptrend in the December contract.

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

Bear move on Tuesday is likely to terminate the prevailing uptrend counters in the list. On the contrary, the lone downtrend counter — ONGC is likely to be under threat. Selling opportunities are likely to exist in seven counters.

Buying opportunities are likely to exist in five counters. Selling in Ranbaxy is likely to be the best bet for Tuesday's trading.

This counter is in the sideways mode. Bear pressure on Tuesday is likely to trigger the downtrend in Ranbaxy.

Cash segment: The composition of the top-10 active counters list remains unchanged. The ranking of the list had some changes.

SAIL moved to the third position and Tata Steel moved to the seventh position.

Most of the counters in the list are in sideways mode. The uptrend in Satyam and Tata Steel and the downtrend in Zee Tele are likely to be under threat.

Bears are likely to have opportunity in five counters. Buying opportunities are likely to exist in four counters. Selling in Infosys is likely to be the best for Tuesday's trading. Bearish trigger level for this counter is placed quite close to its last traded price.

Bear move on Tuesday is likely to initiate a fresh downtrend in Infosys.

(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.