The Hindu Business Line : Bear domination

Bears dominated Tuesday's trading activity. However, the sentiment reading of the tradable counters remains marginally bullish. Bear move on Wednesday is likely to change the sentiment reading to bearish. On the other hand, the bullish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The November contract opened with a bear gap of around 32 points from its previous close. It moved within a range of around 31 points making an intra-day low of 3920.80. The November contract closed with a loss of around 44 points from its previous close.

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The long position in the November contract exited and entered short. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered on Wednesday.

STOCK FUTURES

The composition and ranking of the top-10 tradable counters had minor changes. Hind Lever gave way to NTPC, which occupied tenth position. Reliance Capital and ACC moved up while Tata Steel moved down in the ranking. The top-3 tradable counters in this segment were Reliance, India Cements and IVRCL. The short exit level for Hind Lever is placed at 239.30.

Except SBI, the other uptrend counters are likely to be under threat for Wednesday's trading. On the contrary, all the downtrend counters are likely to be terminated. There are five opportunities on the bull side and four on the bear side for Wednesday.

The best bet is likely to be selling in ACC. This counter is in uptrend. Bear move on Wednesday has a potential to trigger the short entry level in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. Zee Tele moved down and occupied seventh position while Infosys moved up to sixth position.

Except Zee Tele, the other uptrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. On the other hand, all the downtrend counters are likely to be terminated. There are four opportunities on the buy side and five on the sell side for Wednesday.

The best is likely to be selling in ACC. This counter is in uptrend. Bear move 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 NSE. There is risk of loss in trading.)

The author is a technical analyst and fund management consultant.