The Hindu Business Line : Bear domination

Bears dominated over Monday's trading activity. However, the sentiment reading of the tradable counters remains bearish. Bull domination on Tuesday is likely to change the sentiment reading in its favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

Nifty futures

The June month contract opened with a bull gap of around 19 points. However, bulls could not capitalise on their initial momentum and gave way to bears. The June month contract moved within a range of around 150 points making an intra-day high of 2912.25. It closed with a loss of around 126 points from its previous close.

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The June month contract entered a fresh short position in the morning session. The short exit and long entry 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 Tuesday.

Stock futures

The composition and the ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Reliance, Tata Steel and Reliance Capital.

All the uptrend counters in the top-10 tradable list are likely to be terminated during Tuesday's trading. There are no buying opportunities for Tuesday's trading. On the other hand, there are four selling opportunities. The best is likely to be selling in BHEL. This counter is in uptrend. Bear move on Tuesday is likely to trigger the downtrend in this counter.

Cash segment

The composition of the top-10 tradable list had minor changes. ONGC went out of the list and gave way to SAIL. The ranking of the list had no changes.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. On the other hand, ITC is likely to be terminated. There is a lone opportunity on the buy side and ample opportunities on the sell side. The best is likely to be selling in Infosys. Bear domination 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.