The Hindu Business Line : Bear domination

Bears dominated Tuesday's trading activity. The sentiment reading of the tradable counters changed to 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 February month contract opened around its previous close. It moved within a range of around 69 points making an intra-day low of 4110 and closed with a loss of around 60 points.

The long position in the February contract exited and entered short. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Tuesday's trading.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Satyam gave way to Bajaj Auto. The top-3 tradable counters in this segment are Reliance Industries, Hindustan Lever and Tata Steel.

The short exit level for Satyam is placed at 486.95.

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There are seven downtrend counters and two uptrend counters in the top-10 tradable list. Except IDBI, SBI and Century Textiles, other downtrend counters are likely to be under threat for Wednesday's trading. On the other hand, the uptrend counters Tata Steel and ICICI are likely to be terminated. There are five buying opportunities and three selling opportunities for Wednesday's trading.

The best among them is likely to be selling in Reliance Industries. This counter is in sideways 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 minor changes. .

There are four uptrend counters and six downtrend counters in the top-10 tradable list. The downtrend counters Satyam, TCS and IDBI are likely to be under threat for Wednesday's trading. On the other hand, the uptrend counters SAIL, Reliance Industries and Tata Steel are likely to be terminated. There are three opportunities on either side for 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 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.