The Hindu Business Line : Range-bound movement

MONDAY'S trading activity witnessed range-bound movement. The day's market action resulted in reducing the bear count by a considerable margin. The sentiment reading of the tradable counters stands mildly bullish.

Bear domination on Tuesday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to continue with added strength.

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Nifty futures recommendation: The near month March contract opened one point above its previous close and went further by another four points. Later on, bears took charge of the day's proceedings. The March contract moved within a close band of 33 points. The March contract closed lower with a loss of around 26 points.

The short position in the March contract remains intact. The position is now locked-up with a decent profit of 19 points. The exit and bullish trigger levels are placed slightly 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. Tata Steel and State Bank interchanged their positions.

Except for the downtrend in Reliance, all the other counters in the list are likely to be under threat. Five opportunities are likely to exist on either side of trading.

Selling in ONGC is likely to be the best for Tuesday's trading. This counter is in the sideways mode. Bearish trigger level for this counter is placed within a rupee from the last traded value. Bear pressure on Tuesday is likely to trigger the downtrend in ONGC.

Cash segment: The composition of the top-10 active counters list remains unchanged. The ranking of the list had a few changes. SAIL moved to the fifth position and Infosys moved to the ninth position.

Bear pressure on Tuesday is likely to terminate most of the uptrend counters in the list. On the other hand, the downtrend in ONGC is likely to be under threat.

For Tuesday, four opportunities are likely to exist on either side.

The best bet is likely to be selling in Reliance. This counter is in the uptrend. The exit and sell levels for this counter are placed quite closer to the current level. Bear move 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.

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