The Hindu Business Line : Bear run arrested

Bulls gained the control over Monday's trading activity. However, the sentiment reading of the tradable counters changed to bearish. Bull move on Tuesday is likely to change the sentiment reading in their favour.

NIFTY FUTURES

The November month contract opened with a bear gap of around 19 points from its previous close. However, bears could not sustain the initial momentum and gave way to bulls. The November month contract moved within a range of around 72 points making an intraday high of 3875.90. The November month contract closed with a gain of around 18 points from its previous close.

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The short position in the November month contract remains intact. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during trading on Tuesday.

STOCK FUTURES

The composition of the top-10 tradable counters had no changes. However, the ranking had minor changes. Reliance Capital and Bank of India moved down and occupied seventh and ninth positions while ICICI and ACC moved up and occupied sixth and eighth positions respectively. The top-3 tradable counters in this segment were ICICI, SBIN and Reliance Industries.

Most of the counters in the top-10 tradable list are in downtrend. Except ACC and Tata Steel, the other downtrend counters are likely to be under threat for Tuesday's trading. On the contrary the lone uptrend counter SBIN is likely to be terminated. There are ample buying opportunities and a lone selling opportunity for Tuesday's trading. The best bet is likely to be buying in Reliance Industries. This counter is in down trend. Bull move on Tuesday has a potential to trigger the long entry level in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. Tata Motors gave way to Infosys. Infosys occupied seventh position in the ranking. Bank of India and ICICI bank interchanged their positions. Tisco, Zee Tele and Reliance Capital moved down in the ranking. The exit level for Tata Motors is placed at 811.05.

There are seven downtrend and three uptrend counters in the top-10 tradable list. Except ACC and Bank of India, the other down trend counters in the list are likely to be under threat for Tuesday's trading. On the other hand the uptrend counter SBIN is likely to be terminated. There are four opportunities on the buy side and a lone opportunity on the sell side for Tuesday's trading. The best is likely to be buying in Reliance Industries. This counter is in down trend. Bull move 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.