The Hindu Business Line : Bear domination

Bears dominated Tuesday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull move on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

Nifty futures

The December contract opened with a bear gap of around 8 points from its previous close. The December contract moved within a range of around 154 points making an intra-day low of 3,766. The December contract closed with a loss of around 131 points from its previous close.

The December contract entered short. 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 trading on Wednesday.

Stock Futures

The composition of the top-10 tradable counters had no changes. However, the ranking of the list had minor changes. Bank of India and ACC interchanged their positions. The top-3 tradable counters in this segment were Reliance Industries, Reliance Communications and IVRCL.

Click here for table

There are seven downtrend counters in the top-10 tradable list. There are three selling opportunities likely to exist at ACC, Bank of India and Tata Motors for Wednesday's trading.

The best is likely to be selling in Bank of India. This counter is in side ways mode. Bear move on Wednesday is likely to initiate a fresh downtrend in this counter.

Cash segment

The composition and ranking of the top-10 tradable list had no changes. SBI, Infosys and BHEL moved up in the ranking while i-flex Solutions, Satyam and ACC moved down in the ranking.

There are eight downtrend and two uptrend counters in the top-10 tradable list. Tata Motors and Infosys are likely to be terminated during Wednesday's trading.

There is a lone opportunity on either side of the trading. The best is likely to be selling in Tata Motors. This counter is in uptrend. Bear move on Wednesday is likely to reverse the prevailing 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.