The Hindu Business Line : Bear domination

MONDAY'S trading activity witnessed bear domination. The sentiment reading of the tradable counters turned neutral. Bear domination on Tuesday is likely to change the sentiment reading in their favour. On the contrary, it is likely to turn bullish.

Nifty futures recommendation: The December month contract opened with a bear gap of around two points. It moved within a range of around 58 points making an intra-day low of 2652.25. It closed with a loss of around six points from its previous close.

The short position in the December month contract exited during the morning session. The short entry level for the December month contract is placed quite nearer to its last traded price. The long entry level is placed quite far away. Bear domination on Tuesday is likely to initiate a fresh down trend in December month contract.

Click here for table

Stock futures recommendation: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Satyam and Tata motors interchanged their positions. Infosys moved up to sixth position and Ranbaxy moved down to eighth position. The top three tradable counters in this segment were Reliance Capital, Reliance and State Bank.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. On the other hand, a lone downtrend counter Ranbaxy is likely to be terminated. There are two opportunities on the buy side and ample opportunities on the sell side for Tuesday's trading. The best for Tuesday's trading is likely to be selling in State Bank. Bear move on Tuesday is likely to initiate downtrend in State Bank.

Cash segment: The composition and ranking of the top-10 tradable list had no changes. All the uptrend counters in the list are likely to be under threat for Tuesday's trading. A lone down trend counter State Bank is likely to be under threat. There are ample selling opportunities likely to exist on the bear side. The best for Tuesday's trading is likely to be selling in Infosys. This counter is in sideways mode. Bear pressure on Tuesday is likely to initiate a fresh down 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.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page