The Hindu Business Line : Bear pressure continues

The sentiment reading of the tradable counters continued to remain bearish. Bull move on Tuesday has the potential to change the sentiment reading in their favour. On the other hand, the prevailing bearish sentiment is likely to be further strengthened.

Nifty Futures Recommendation: The October month contract opened around its previous level and went further 20 points, touching an intra-day high of 2,590.90.

But the bulls were not able to capitalise on their initial pressure and gave way to the bears. The October month contract moved with in a range of 38 points. It closed lower with a loss of seven points from Friday's close.

The short position in the October month contract is intact with stop loss placed at 2,591.05. The exit and buy levels for October month contract are placed quite far away. In the normal course of trading on Tuesday, these levels are unlikely to be triggered.

Stock Futures Recommendation: The composition of the top 10 tradable lists had minor changes. Ranking of the list had a total revamp.

ONGC moved out of the top 10 tradable list giving way to BOB. Tata Steel moved to the first position followed by Reliance and IPCL. SBI is pushed down to eighth position. The exit level for the downtrend in ONGC is placed at 1,051.05.

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All the uptrend counters in the list are under threat. Four of the seven downtrend counters in the list are under threat. HLL is the lone opportunity on the bear side for Tuesday's trading.

Bulls are likely to have opportunity in Reliance and BOB. The best bet for Tuesday's trading is likely to be the buying in Reliance. Bull pressure on Tuesday is likely to reverse the prevailing trend in this counter.

Cash Segment: The composition and ranking of the top 10 tradable list had some changes. Tisco made an entry to the top 10 tradable list by pushing out Sterling Biotech. Reliance Capital and Sesa Goa interchanged their positions. The exit level for the downtrend in Sterling Biotech is placed at 146.85.

Most of the counters in the list are likely to be under threat for Tuesday's trading. Buying opportunities are likely to exist in Reliance Industries and ITC ltd.

Sesa Goa is the lone selling opportunity for Tuesday's trading. The best bet is likely to be the buying in Reliance Industries. This counter is in downtrend. Bull move on Tuesday is likely to trigger the uptrend in this counter.

(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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