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 strengthened with additional counters.

NIFTY FUTURES

The March contract opened with a bear gap of around 5 points from its previous close. It moved within a range of around 87 points making an intra-day low of 3863.55 and closed with a loss of around 81 points from its previous close.

The short position in the March contract remains intact and has locked a profit of around 90 points. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Wednesday's trading.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had no changes. There are six downtrend counters and four uptrend counters in the top-10 tradable list. Except IDBI, other downtrend counters are likely to be under threat for Wednesday's trading. On the other hand, the uptrend counters SBI, Tata Steel and Reliance Capital is likely to be terminated. There are five buying opportunities and three selling opportunities for Wednesday's trading.

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The best among them is likely to be buying in Hindalco. This counter is in downtrend. Bull move on Wednesday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. The short exit level for Bajaj Auto is placed at 2821.05. The long exit level for ACC is placed at 940.20.

There are five downtrend counters and four uptrend counters in the top-10 tradable list. Except Zee Tele and ICICI Bank, the other downtrend counters are likely to be under threat for Wednesday's trading. On the other hand, the entire uptrend counters are likely to be terminated. There are four buying opportunities and five selling opportunities for Wednesday's trading.

The best among them is likely to be selling in SAIL. 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.