The Hindu Business Line : Sideways movement

Today's market witnessed sideways movement. The sentiment reading of the tradable counters turned bearish. Bull move on Tuesday has the potential to change the sentiment reading to bullish. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The June month contract opened with a bull gap of around 37 points from its previous close. However, the initial momentum is not sustained and gave way to bear. The contract moved within a range of around 61 points. It closed with a loss of around 16 points from its previous close.

The long position in the Nifty futures in the June contract is exited and 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 of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. SBI and Reliance interchanged their positions.

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Reliance Capital, SBI, Century Textiles and Hindalco are the uptrends in the top-10 list. Except ICICI, all other counters in the top-10 tradable list are in the downtrend. Except IDBI, all the counters in the list are under threat for Tuesday.

Buying opportunities are likely to exist in Tata Steel, Reliance, Satyam, Tata Motors and ICICIBank. On the other hand, there are five opportunities in the selling side.

The best among them is selling in ICICI Bank. Bear move on Tuesday is likely to trigger the sell of this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. The ranking of the top-10 tradable list had minor changes. Tata Steel and Reliance Industries interchanged their positions. There are six uptrend counters and three downtrend counters in the list. Uptrend counters are Infosys, SBI, SAIL and BHEL. Except Tata Steel, Satyam and IDBI all the counters are under threat for Tuesday's trading. Buying opportunities are likely to exist in Reliance, Tata Motors and Hindalco. Four opportunities exist in the sell side.

The best among these is likely to be selling in Infosys. This counter is in uptrend. Bear move on Tuesday is likely to change 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.