The Hindu Business Line : Bear domination

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

NIFTY FUTURES

The February contract opened with a bull gap of around 4 points from its previous close. It moved within a range of around 43 points, making an intra-day low of 4101.10. The February contract closed with a loss of around 24 points from its previous close.

February contract entered a new long position. The long exit and short entry levels are placed quite nearer to its last traded price. In the normal course of trading during Wednesday these levels are likely to be triggered.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. ICICI Bank gave way to BHEL. IDBI, Tata Steel and Satyam moved up while Reliance, Century Textiles and Tata Motors moved down in the ranking. There are five downtrend counters and four uptrend counters in the top-10 tradable list. Except MTNL and Tata Motors, other downtrend counters are likely to be under threat for Wednesday's trading. Except IDBI, other uptrend counters are likely to be under threat for Wednesday's trading.

There are four buying and three selling opportunities for Wednesday's trading.

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The best among them is likely to be selling in Century Tex. This counter is in uptrend. 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 minor changes. TCS gave way to IDBI. IDBI occupied eighth position in the ranking. BHEL moved up while ICICI and ONGC moved down in the ranking. The short exit level for TCS is placed at 1315.05.

There are seven uptrend counters and three downtrend counters in the top-10 tradable list. The downtrend counter Infosys is likely to be terminated. Except SAIL, Polaris and IDBI, other uptrend counters are likely to be under threat for Wednesday's trading.

There are four selling opportunities and a lone buying opportunity for Wednesday's trading. The best among them is likely to be buying in Infosys. This counter is in downtrend. Bull 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.