The Hindu Business Line : Bear domination

Bears dominated the Monday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull move on Tuesday is likely to change the sentiment reading in their favour.

NIFTY FUTURES

The January month contract opened with a bear gap of around 22 points from its previous close. The January contract moved within a range of around 50 points making an intraday low of 3906.35. The January contract closed with a loss of around 55 points from its previous close.

The short position in the January 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 Tuesday's trading.

STOCK FUTURES

Click here for table

The composition and the ranking of the top-10 tradable list had minor changes. ONGC gave way to Infosys. There are two uptrend and eight downtrend counters in the list. All the downtrend counters in the list are likely to be under threat for Tuesday's trading. On the other hand, the Reliance Capital is likely to be terminated. There are ample opportunities on the buy side and a lone opportunity on the sell side for Tuesday's trading. The best among them is likely to be selling in Reliance Industries. This counter is in downtrend. Bear move on Tuesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. Tata Motors gave way to ONGC. Infosys and Satyam moved up while , Tata Steel, and BHEL moved down in the ranking.

Four downtrend counters in the list are likely to be under threat for Tuesday's trading. On the other hand, the uptrend counter ONGC 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 among them is likely to be buying in BHEL. This counter is in downtrend. Bull move on Tuesday 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.