The Hindu Business Line : Bears prevail

MONDAY'S trading activity witnessed range-bound movement. Bears managed to gain from the day's trading. The sentiment reading of the tradable counters stands mildly bearish. Bull domination on Tuesday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bearish sentiment is likely to be further strengthened.

Nifty futures recommendation: During the initial hour of Monday's trading, the August contract lost around 14 points. Later on bulls took charge and wiped out their early losses. The August month contract moved within a band of 31 points. It closed higher with a gain of 10 points with respect to Friday's close.

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Monday's market action had no impact on the recommended levels. Bullish trigger level for the August contract is placed quite closer to the current level. Bull move on Tuesday is likely to trigger the uptrend in the August contract.

Stock futures recommendation: There were no new entries or exits to the top-10 active counters list. The ranking of the list had a few changes. Polaris moved to the fourth position and ONGC to the eighth position.

The exit level for the downtrend in REL is likely to terminate at Rs 638.05.

For Tuesday, most of the counters in the list are likely to be under threat. Selling opportunities are unlikely to exist for Tuesday's trading. Buying opportunities are likely to exist in ICICI Bank and ONGC.

Between the two, the best bet is likely to be ONGC. This counter is in the downtrend. The exit and bullish trigger levels for this counter are placed closer to the last traded price. Bull pressure on Tuesday is likely to trigger these levels.

Cash segment: The composition of the top-10 tradable list remains intact. The ranking of the list had a minor change. State Bank and Satyam interchanged their positions.

Bull pressure on Tuesday could be a threat to most of the downtrend counters in the list. On the contrary, the uptrend in Reliance, State Bank and VSNL is likely to be terminated. Bears are unlikely to have any opportunity for Tuesday's trading. Buying opportunities are likely to exist in Infosys, ONGC and TCS.

The best among the above is likely to be Infosys. This counter is in the downtrend. Bull move on Tuesday has the potential to reverse the prevailing 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.

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