The Hindu Business Line : Bears prevail

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

Nifty futures: The December month contract opened with a bear gap of around 2 points. It moved with in a range of around 58 points making an intraday low of 2640.35. It closed with a loss of around 6 points from its previous close.

Click here for table

The December month contract entered short during the morning session. The exit and buy levels for the December month contract are placed quite far away from the last traded price. These levels are unlikely to be triggered during Wednesday's trading.

Stock futures: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Motors and Tata Steel moved up to third and fourth positions respectively. Satyam moved down to fifth position. The top three tradable counters in this segment were State bank, Reliance Capital and Reliance.

All the down trend counters in the top 10 tradable list are likely to be under threat for Wednesday's trading. On the other hand, a lone up trend counter Infosys is likely to be terminated. There are four opportunities on the buy side and two opportunities on the sell side for Wednesday's trading. The best for Wednesday's trading is likely to be selling in Satyam. Bear move on Wednesday is likely to initiate a fresh down trend in this counter.

Cash segment: The composition and ranking of the top-10 tradable list had no changes. Both the up trend counters in the list are likely to be under threat for Wednesday's trading. Except India Bulls all other downtrend counters in the list are likely to be terminated. There are three opportunities on the either side of trading. The best for Wednesday's trading is likely to be selling in Satyam. This counter is in side ways mode. Bear pressure on Wednesday 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