The Hindu Business Line : Bear domination

Bears dominated Tuesday's trading activity. The sentiment reading of the tradable counters changed to bearish. Bull pressure on Wednesday is likely to neutralise the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

Nifty Futures Recommendation

The April month contract opened with a bear gap of around 22 points and went up 5 points. However, Bulls could not capitalise on their initial movement and gave way to bears. April contract moved with in a range of around 86 points making an intra-day low of 3454. It closed with a loss of around 96 points from its previous close.

The short position in the April month contract remains intact. The short exit and buy levels are placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Wednesday.

Stock Futures Recommendation

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. ACC moved down to fourth position and Satyam moved up to the top slot. REL moved down to ninth position and Infosys moved up to third position. The top-3 tradable counters in this segment were Tata steel, Reliance and Satyam.

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There are no up-trend counters in the list. On the other hand, four down-trend counters are likely to be terminated during Wednesday's trading. There are four opportunities on the buy side. The best is likely to be buying in Bajaj Auto. Bull pressure on Wednesday is likely to trigger the uptrend 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 Reliance interchanged their positions.

Reliance and Infosys are the two counters likely to be terminated on bull and bear sides respectively. Infosys is likely to have buying opportunity and State Bank of India is likely to have selling opportunity for Wednesday's trading. The best is likely to be buying in Infosys. This counter is in down trend. Bull pressure on Wednesday 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 National Stock Exchange. There is risk of loss in trading.)

The author is a technical analyst and fund management consultant.