The Hindu Business Line : Bear domination

The sentiment reading of the tradable counters stands bearish. Bull domination on Monday is likely to terminate the bear count by considerable margin thereby resulting a change in the sentiment reading. Otherwise, the prevailing bearish sentiment is likely to be further strengthened.

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Nifty futures recommendation: The near month March contract opened with a bull gap of seven points and went further by another eight points.

Later on, bears took charge of the day's proceedings and wiped out their early losses. The March contract moved within a band of 30 points registering an intra-day low of 2050.10. It closed with a loss of nine points with respect to previous close.

Bear domination during the day led to the reversal of the uptrend in the March contract. The long trade exited with a loss of nine points. In the normal course of trading on Monday, the initiated short position is likely to continue. However, bull domination has the potential to reinstate the uptrend in the March contract.

Stock futures recommendation: The composition of the top-10 tradable list remains intact. The ranking the list underwent a change. Infosys moved to the fourth position. Trading activity in ONGC was quite impressive on Friday.

Except for the Tata Steel, 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 five counters. For Monday, the best is likely to be the selling in Infosys. This counter is in the uptrend. The exit and sell levels for this counter is placed quite closer to the current level. Bear move on Monday has the potential to reverse the prevailing uptrend in Infosys.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had few changes. Tata Steel moved to the fifth position followed by Maruti and Tata Tele. The downtrend in ING Vysya is likely to be terminated at 187.05.

For Monday, most of the counters in the list 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 Tata Tele is likely to be the best bet for Monday's trading. Bearish trigger level for this counter is placed very close to the last traded price. Bear pressure on Monday is likely to trigger the downtrend in Tata Tele.

(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.

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