The Hindu Business Line : Bull domination

Bulls dominated the Friday's trading action. The sentiment reading of the tradable counters changed to bullish. Bear domination on Monday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures: The March month contract opened with a bull gap of around 17 points. The March month contract moved with in a range of around 46 points making an intra-day high of 3171.70. It closed with a gain of around 53 points from its previous close.

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The short position in the March month contract exited and entered a fresh long position in the morning session. Both the long exit and short entry levels are placed quite far away from its last traded price. In the normal course of trading during Monday, these levels are unlikely to be disturbed.

Stock futures: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Infosys and Hindustan Lever interchanged their positions. The top-3 tradable counters in this segment were State Bank, Infosys and Tata Motors.

All the counters in the top-10 tradable list are likely to be under threat for Monday's trading. There is a lone opportunity on the buy side and ample opportunities on the sell side. The best is likely to be selling in Reliance. This counter is in uptrend. Bear move on Monday is likely to reverse the existing trend in this counter.

Cash segment: The Composition and the ranking of the top-10 tradable list had minor changes. Tata Steel went out of the list and gave way to Satyam. Maruti and Titan interchanged their positions. Reliance capital moved up to eighth position and VSNL moved down to ninth position. The long exit level for Tata Steel is placed at 453.95.

All the counters in the top-10 tradable list are likely to be terminated during Monday's trading. A lone opportunity on the buy side is likely to exist in Maruti. On the other hand, there are ample opportunities on the sell side. The best is likely to be selling in Titan. Bear pressure on Monday is likely to trigger the downtrend in Titan.

(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.