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K. Premkumar

BEARS gained control of Monday's trading activity. The day's market action resulted in changing the sentiment reading to bearish. Bull domination on Tuesday has the potential to turn the sentiment reading to bullish. Otherwise, the prevailing bearish sentiment is likely to be further strengthened.

Nifty futures recommendation: The near month August contract opened two points above the previous close and went further by another 18 points. During the later part of the day, bears made a strong comeback and wiped out their losses. The August contract moved within a band of 54 points registering an intra-day low of 2350.30. It closed with a loss of 18 points with respect to Friday's close.

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Bear domination during the day led to the reversal of the uptrend in the August contract. The long trade exited with a loss of seven points. In the normal course of trading on Tuesday, the initiated short position is likely to continue.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had few changes. The exit level for the downtrend in Bank of India, ICICI Bank and REL are placed at 131.45, 498.05 and 604.55, respectively.

Bull move on Tuesday is likely to terminate most of the uptrend counters in the list. On the other hand, the uptrend in ACC and Infosys are likely to be under threat. For Tuesday, three opportunities are likely to exist on either side of trading. The best is likely to be the selling in Infosys. This counter is in the uptrend. The exit and bearish trigger level for this counter is placed closer to the current level. Bear pressure on Tuesday is likely to trigger these levels.

Cash segment: The composition of the top-10 active counters list remains intact. The ranking of the list had some changes. Tata Steel moved to the fourth position and ONGC moved to the eighth position.

Except for Infosys, all the other counters in the list are in the downtrend. Bull pressure on Tuesday could be a threat to four of the nine downtrend counters in the list. On the contrary, the lone uptrend counter-Infosys is likely to be terminated. Bulls are likely to have opportunity in ONGC and Saytam. A lone selling opportunity is likely to exist in Infosys. The best among the above is likely to be the buying in Satyam. This counter is in the downtrend. Bull move on Tuesday has the potential to reverse the prevailing downtrend 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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