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K. Premkumar

BEARS extended further pressure over Monday's trading activity. The sentiment reading of the tradable counters remains strongly bearish with no uptrend counters. Bull domination on Tuesday is likely to reduce the bear count by a substantial margin thereby resulting a change in the sentiment reading.

On the contrary, the prevailing bearish sentiment is likely to continue with a slight change in the value.

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Nifty futures recommendation: The April month contract opened with a loss of six points and made steady losses through the day's trading. Bulls were unable to make any impact during the day. The April contract moved within a band of 22 points registering a low of 1993.20. It closed with a loss of 20 points with respect to Friday's close.

The downtrend in the April contract remains intact. The short position is locked-up with a decent profit of 20 points. Bull domination on Tuesday has the potential to terminate the downtrend in the April contract. Bullish trigger level for the April contract is placed far away and this is unlikely to be triggered.

Stock futures recommendation: There were no new entries or exits to the top-10 active counters list. The ranking of the list had a total revamp. The top three traded counters in this segment were Tata Steel, Satyam and Tata Motors.

The exit level for the short position in Bank of India is placed at Rs 99.55.

Bull move on Tuesday is likely to terminate most of the downtrend counters in the list. Buying opportunities are likely to exist in five counters. A lone selling opportunity is likely to exist in Tata Motors.

The best bet for Tuesday's trading is likely to be the buying in PNB. This counter is in the downtrend. The exit and bullish trigger level for this counter is placed very close to the current level. Bull pressure on Tuesday is likely to trigger these levels.

Cash segment: The composition as well as the ranking of the top-10 tradable list remain unchanged. Bears were successful in triggering the downtrend in the recommended counter SAIL.

Except for Tata Motors, all the other counters in the list are in downtrend. For Tuesday, most of the downtrend counters in the list are likely to be under threat.

Bulls are likely to have opportunity in as much as eight counters. Selling opportunity is likely to exist in Tata Motors.

Buying in PNB is likely to be the best for Tuesday's trading. The exit and buy levels for these counter are placed quite closer to the last traded price. Bull move on Tuesday has the potential to reverse the prevailing downtrend in PNB.

(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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