The Hindu Business Line : Range-bound movement

MONDAY'S trading activity witnessed range bound movement. However, the sentiment reading of the tradable counters remains bullish. Bear pressure on Tuesday has the potential to change the sentiment reading in its favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures: The January month contract opened with a bear gap of around 14 points. It moved within a range of around 28 points making an intraday low of 2,862. It closed with a loss of around 10 points from its previous close.

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The long position in the January month contract exited and entered short in the morning session. The short exit and long entry levels are placed quite far away from their last traded price. In the normal course of trading, these levels are unlikely to be triggered during Tuesday's trading.

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

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 for Tuesday is likely to be buying in Reliance. This counter is in downtrend. Bull pressure on Tuesday has the potential 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 and Titan interchanged their positions.

Except Titan, all the counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. There are ample opportunities on the buy side. Tata Motors is likely to be the lone selling opportunity for Tuesday's trading.

The best bet is likely to be buying in Reliance. Bull pressure on Tuesday has the potential 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.