The Hindu Business Line : Bear domination

MONDAY'S trading activity witnessed bear domination. The sentiment reading of the tradable counters turned to bearish. Bull domination on Tuesday is likely to change the sentiment reading in their favour.

On the contrary, the bearish sentiment is likely to be strengthened.

Click here for table

Nifty futures recommendation: The January month contract opened with a bull gap of around 4 points and further went up by 10 points. However, bulls could not capitalise on their initial momentum and gave way to bears.

The January month contract moved within a range of around 33 points making an intra-day low of 2877.15. It closed with a loss of around 12 points from its previous close.

The January month contract entered a fresh long position in the morning session. The exit and sell levels are placed quite nearer to its last traded price. During the course of Tuesdays trading, these levels are likely to be triggered.

Stock futures recommendation: The composition and the ranking of the top-10 tradable list had no changes. The top three tradable counters in this segment were Reliance, IPCL and State Bank.

All the counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. Five opportunities are likely to exist on both the sides of trading for Tuesday's trading. The best is likely to be selling in Infosys. This counter is in up trend. Bear strength on Tuesday is likely to reverse the existing trend in this counter.

Cash segment: The Composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Satyam moved up to third position and VSNL moved down to fifth position.

All the counters in the top-10 tradable list are likely to be terminated during Tuesday's trading. There are ample opportunities on the buy side and two opportunities on the sell side. The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Tuesday is likely to reverse the existing 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.