The Hindu Business Line : Bear domination

Bears dominated Monday'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 its favour. On the contrary the prevailing bearish sentiment is likely to be further strengthened with additional counters.

Nifty Futures

The March contract opened around its previous close. It moved within a range of around 54 points making an intra-day low of 3,831.20. It closed with a loss of around 23 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 quite nearer to its last traded price. These levels are likely to be triggered during Wednesday's trading.

Stock Futures

The composition and ranking of the top-10 tradable list had minor changes. IDBI gave way to Tata Motors. Tata Motors occupied tenth position in the ranking. Tata Steel and TCS moved up in the ranking while ICICI moved down.

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The top-3 tradable counters in this segment were Century Tex, Reliance Industries and ICICI Bank. The long exit level for IDBI is placed at 80.25.

There are five uptrend counters and five downtrend counters in the top-10 tradable list. Except Tata Motors, other downtrend counters are likely to be under threat for Wednesday's trading. On the other hand, all the 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 Reliance Industries. This counter is in uptrend. Bear move on Wednesday is likely to reverse the prevailing trend in this counter.

Cash Segment

The composition and ranking of the top-10 tradable list had no changes.

There are seven downtrend counters and three uptrend counters in the top-10 tradable list. Except ICICI and ITC, other downtrend counters are likely to be under threat for Wednesday's trading. On the other hand, the uptrend counters Satyam and Tata Steel are likely to be terminated.

There are five buying opportunities and two selling opportunities for Wednesday's trading. The best among them is likely to be selling in Tata Steel. 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.