The Hindu Business Line : Bear domination

Bears dominated Friday's trading activity. The sentiment reading of the tradable counters changed to 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 bull gap of around 21 points from its previous close. However, the bulls could not sustain their initial momentum and gave way to bears. The March contract moved within a range of around 113 points making an intra-day low of 3542. The March contract closed with a loss of around 48 points from its previous close.

The long position in the March 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 Monday's trading.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Reliance Industries, SBI and Century Tex.

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Most of the counters in the top-10 list are in downtrend. Except Century Tex, ACC and ICICI, other downtrend counters are likely to be under threat for Monday's trading. On the other hand, the lone uptrend counter TCS is likely to be terminated. There are ample buying opportunities and a lone selling opportunity for Monday's trading. The best among them is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Monday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had minor changes. Reliance Industries gave way to Wipro. Wipro occupied tenth position in the ranking. The short exit level for Reliance Industries is placed at 1305.85.

All the counters in the top-10 tradable list are in downtrend. Except Satyam, ITC and Wipro, other downtrend counters are likely to be under threat for Monday's trading. There are ample buying opportunities for Monday's trading. The best among them is likely to be buying in TCS. This counter is in downtrend. Bull move on Monday 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.