The Hindu Business Line : Bear domination

Friday's trading activity witnessed a bear domination. The sentiment reading of the tradable counters is marginally bullish. Bear move on Monday is likely to change the sentiment reading in their favour. On the contrary, bull move on Monday is likely to strengthen the prevailing sentiment.

Nifty futures

The August month contract opened with a bear gap of around 18 points. However, the bears could not capitalise on their initial momentum and gave way to bull pressure. Bears regained control during the latter part of Friday's trading. The August contract moved with in a range of around 72 points making an intraday high of 3222.95. It closed with a loss of around 5 points from its previous close.

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The long position in the August contract exited and entered short. Both the short exit and long entry levels are placed quite far away from Friday's last traded price. These levels are unlikely to be triggered during Monday's trading.

Stock Futures

The composition and ranking of the top-10 tradable list had minor changes. Maruti moved out of the list giving way to iFLEX. iFLEX occupied tenth position in the ranking. BHEL moved up while Satyam and Tata Steel moved down in the ranking. The top-3 tradable counters in this segment were Reliance, Tata Steel and SBIN. The exit levels for Ranbaxy and Bajaj auto are placed at 383.10 and 2566.90 respectively.

Most of the counters in the top-10 tradable list are in uptrend. All the uptrend counters are likely to be under threat for Monday's trading. The downtrend counters Satyam and ACC are likely to be terminated during Monday's trading.

There are ample selling opportunities and three buying opportunities for Monday's trading. The best is likely to be selling in ONGC. This counter is in up trend. Bear move on Monday is likely to reverse the existing trend in this counter.

Cash Segment

The composition and ranking of the top-10 tradable list had no changes. There are four uptrend counters and five downtrend counters in the list. All the uptrend counters are likely to be under threat for Monday's trading.

On the contrary, the downtrend counters Maruti, Satyam and L&T are likely to be terminated during Monday's trading. There are five selling opportunities and four buying opportunities for Monday's trading. The best is likely to be selling in VSNL. This counter is in up trend. Bear move on Monday is likely to trigger the down 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.