The Hindu Business Line : Bears prevail

Bears prevailed over 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 favor. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The January month contract opened with a bear gap of around 12 points from its previous close. The January month contract moved within a range of around 74 points making an intraday low of 3885.20. The January month contract closed with a loss of around 14 points from its previous close.

The short position in the January month contract exited and entered long. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Wednesday's trading.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. i-flex gave way to Satyam. Satyam occupied ninth position in the ranking. Reliance Industries and SBI interchanged their positions. The top-3 tradable counters in this segment were HDFC Bank, Reliance Communications and Reliance Industries.

There are three uptrend and seven downtrend counters in the list. All the uptrend counters in the list are likely to be under threat for Wednesday's trading. On the other hand, the downtrend counters Tata Steel, ACC and Infosys are likely to be terminated. There are each three opportunities on both the sides of Wednesday's trading. The best among them is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Wednesday 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. i-flex gave way to Tata Motors. Infosys, SBI, ONGC and BHEL moved up in the ranking.

All the up trend counters in the list are likely to be under threat for Wednesday's trading. On the other hand, Infosys, BHEL and Tata Motors are likely to be terminated. There are three opportunities on either side of Wednesday's trading. The best among them is likely to be selling in Zee Telefilms. This counter is in up trend. 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.