The Hindu Business Line : Bear domination

Bears dominated Friday's trading activity. The sentiment reading of the tradable counters remains marginally bearish. Bull move on Monday 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 March contract opened with a bear gap of around 46 points from its previous close. The March contract moved within a range of around 149 points making an intraday low of 3,670. The March contract closed with a loss of around 121 points from its previous close.

The short position in the March contract remains intact and has a locked profit of around 225 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 Monday's trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. IDBI and Reliance moved up in the ranking while SBI and Century Tex moved down. The top-3 tradable counters in this segment were Reliance, SBI and Tata Steel.

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There are five downtrend counters and four uptrend counters in the top-10 tradable list. All the uptrend counters are likely to be terminated. There are five selling opportunities for Monday's trading. The best among them is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Monday 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. IDBI, Tatasteel and ACC moved up in the ranking while Zee Tele and SBI moved down. The short exit level for Bajaj Auto is placed at 2,627.05. The long exit level for Andhra bank is placed at 76.50.

There are four uptrend counters and four downtrend counters in the top-10 tradable list. All the uptrend counters are likely to be terminated. There are ample selling opportunities for Monday's trading. The best among them is likely to be selling in Tata Steel. This counter is in sideways mode. Bear move on Monday is likely to initiate a fresh downtrend 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.