The Hindu Business Line : Bear domination

Bears dominated Friday's trading activity. However, the sentiment reading of the tradable counters remains bullish with some added strength. Bear move on Friday is likely to neutralise the sentiment reading. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

NIFTY FUTURES

The November month contract opened with a bull gap of around 8 points from its previous close and further went up by another 4 points. However, bulls could not sustain the initial momentum and gave way to bears. The November contract moved within a range of around 49 points making an intraday low of 3838.10. The November contract closed with a loss of around 14 points from its previous close.

The long position in the November contract exited and entered short. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during trading on Monday.

STOCK FUTURES

The composition and ranking of the top-10 tradable counters had no changes. The top-3 tradable counters in this segment were SBIN, ACC and ICICI Bank.

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There are four uptrend and six downtrend counters in the top-10 tradable list. All the downtrend counters are likely to be terminated during Monday's trading. There are six buying opportunities for Monday's trading. The best bet is likely to be buying in Reliance Industries. This counter is in down trend. Bull move on Monday has a potential to trigger the long entry level 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. Bajaj Auto went out of the list and gave way to Reliance Capital. Bank of India and ICICI bank interchanged their positions. Tata Steel and Zee Tele moved up to seventh and eighth positions respectively. The long exit level for Bajaj Auto is placed at 2542.25.

All the down trend counters in the list are likely to be under threat for Monday's trading. There are six opportunities on the buying side. The best is likely to be buying in Reliance Industries. This counter is in down trend. Bull move on Monday 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.