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

January contract opened with a bear gap of around 17 points from its previous close. The contract moved within a range of around 39 points making an intra-day low of 4066. It closed with a loss of around 41 points from its previous close.

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

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Tata Motors gave way to ONGC, which occupied tenth position in the ranking. Reliance and ICICI moved down in the ranking while SBI moved up. The top-3 tradable counters in this segment were SBI, Reliance Communications and India Cements. The long exit level for Tata Motors is placed at 946.95.

There are nine downtrend counters and a lone uptrend counter in the top-10 tradable list.

Except Century Textiles, SBI and Satyam, other downtrend counters are likely to be under threat for Wednesday's trading. There are ample buying opportunities for Wednesday's trading. The best among them is likely to be buying ONGC. This counter is in downtrend. Bull move on Wednesday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had no changes. The long exit level for Zee Tele is placed at 298.95.

There are eight downtrend counters and two up trend counters in the top-10 tradable list. All the counters are likely to be under threat for Wednesday's trading. There are ample buying and two selling opportunities for Wednesday's trading. The best among them is likely to be selling in Infosys. 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.