The Hindu Business Line : Bear domination

THE sentiment reading of the tradable counters turned bearish. Bull domination on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with the additional counters.

Nifty futures recommendation: The November month contract opened with a bear gap of around 16 points and went up by 30 points. However, bulls are not able to sustain their momentum and succumbed to bear pressure. The November month contract moved with in a range of 52 points making an intraday low of 2568.75. The November month contract is closed with a loss of around 37 points from its previous close.

The long position in the November contract remains intact. The exit level for the November month contract is placed quite nearer to its last traded price with a huge locking profit of around 192 points. This level is likely to be triggered during Wednesday's trading. The sell level is placed quite far away.

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Stock futures recommendation: The composition and the ranking of the top-10 tradable list had minor changes. Arvind Mills went out of the list and gave way to Maruti. The exit level for Arvind Mills is placed at 112.8.This counter is in down trend. IPCL and Tata Motors interchanged their positions. The top three tradable counters in this segment were Reliance Capital, Reliance and State Bank.

Two up trend counters, State Bank and Tata Motors are likely to be under threat for Wednesday's trading. On the other hand three down trend counters are likely to be terminated. Buying opportunities are likely to exist in Infosys and Reliance. Selling opportunities are likely to exist in four counters in the list. The best for the Wednesday is likely to be selling in Infosys. This counter is in side ways. Bear pressure on Wednesday is likely to initiate a fresh down trend in this counter.

Cash segment: The composition of list had no changes. The ranking of the top-10 tradable list had minor changes. Reliance Capital and Titan interchanged their positions. State Bank and Satyam interchanged their positions. SRF moved to seventh position and Infosys moved to eighth position.

All the uptrend counters in the list are likely to be under threat for Wednesday's trading. Three down trend counters Reliance, Satyam and Infosys are likely to be under threat. Three opportunities are likely to exist in both the side of trading. The best for Wednesday's trading is likely to be selling in State Bank. This counter is in up trend. Bear pressure on Wednesday is likely to reverse the prevailing trend 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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