The Hindu Business Line : Bears prevail

Bull pressure on Monday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to continue with added strength.

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Nifty futures recommendation: The June month contract opened two points lower than the previous close and went further down by another 11 points.

Thereafter, bulls made a strong comeback and wiped out their losses. The June contract moved within a band of 26 points. It closed with a gain of nine points with respect to previous close.

Initial bear move led to the reversal of the uptrend in the June contract. The long trade exited with a loss of six points. The initiated short position is likely to be under threat.

Bullish trigger level for the June contract is placed within five points from the last traded value. Bull move on Monday is likely to reverse the prevailing downtrend in the June contract.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable counters list remain undisturbed. The top three traded counters in this segment were Reliance, Tata Steel and State Bank of India.

The downtrend in ONGC is likely to terminate at Rs 930.05.

Bear move on Monday is likely to terminate the prevailing uptrend counters in the list. On the contrary, the prevailing downtrend counters 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 bet is likely to be the selling in State Bank of India.

This counter is in the sideways mode. Sell level for this counter is placed closer to the current level. Bear pressure on Monday is likely to trigger the downtrend in State Bank of India.

Cash segment: The composition of the top-10 active counters list underwent a change. Tata Motors regained entry with the exit of Wipro. The ranking of the list remains unchanged.

For Monday, most of the counters in the list are likely to be under threat.

Bulls are likely to have opportunity in seven counters. Selling opportunities are likely to exist in three counters.

Buying in Satyam is likely to be the best for Monday's trading.

Bullish trigger level for this counter is placed quite closer to the last traded price.

Bull move on Monday is likely to initiate a fresh uptrend in Satyam.

(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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