The Hindu Business Line : Bear domination

Bear dominated Monday's trading activity. The sentiment reading of the tradable counters turned bearish. Bull move on Tuesday has the potential 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 June contract opened with a bull gap of around 13 points from its previous close. It moved within a range of around 74 points, making an intra-day high of 4310, and closed with a loss of around 49 points from its previous close.

The June contract is initiating a fresh downtrend. 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 activity.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. ONGC went outside from the top-10 tradable list and it is filled by Reliance. Reliance occupied fifth position in the list. The tradable counters in this segment were Reliance Capital, SBI and Tata Steel.

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Except Reliance Capital and SBI, all the counters in the top-10 tradable list are in downtrend. All the uptrend counters in the list are under threat for Tuesday. There are five buying and five selling opportunities likely to exist in the list.

The best candidate is to buying in ICICI Bank. This counter is in downtrend. Bull move on Tuesday is likely reverse the trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. Satyam went outside from the top-10 tradable list and it is filled by BHEL. BHEL occupied last position in the list. Tata Motors moved from last to seventh position and pushed ICICI Bank and SAIL one step down in the list.

Three uptrend and six downtrend counters are likely to exist in the top-10 tradable list. In the uptrend counters, Bajaj Auto and ICICI are under threat for Tuesday's trading. There are four buying and three selling opportunities likely to exist in the list.

The best among these is likely to be selling in Bajaj Auto. This counter is in uptrend. Bear move on Tuesday is likely to reverse the existing position 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.