The Hindu Business Line : Sideways movement

Monday's trading activity witnessed sideways movement. However, sentiment reading of the tradable counters remains slightly bearish. Bull move on Tuesday is likely to change the current sentiment. On the contrary, the prevailing bearish sentiment may be further strengthened with additional counters.

NIFTY FUTURES

June month contract opened with a bear gap of around 9 points from its previous close. The contract moved within a range of around 34 points, closing with a gain of around 2 points from its previous close.

The long position in the June month nifty future is intact. The long exit and short entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Tuesday's trading.

STOCK FUTURES

The composition of the top-10 tradable list had a minor change. However, the ranking of the list had no changes. Tata Motors made its way to top-10 list pushing out ICICI Bank and occupied last position.

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Except SBI, Reliance Industries, Tata Steel, Satyam and BHEL all other counters are in up trend. Bear domination on Tuesday is likely to terminate the up trend in Hindalco and Tata Motors.

On the other hand, all the downtrend counters are under threat. Buying opportunities are likely to exist in SBI, Reliance Industries, Tata Steel, Satyam and BHEL. Selling opportunities may exist in Hindalco and Tata Motors. The best among these is buying Reliance Industries. This counter is in down trend, bull move on Tuesday is likely to reverse the current position.

CASH SEGMENT

The composition of the top-10 list had no changes. However, ranking of the top-10 tradable list had minor changes. SAIL and Tata Steel interchanged their positions.

Except IDBI, Tata Motors, Satyam and Hindalco all other counters in the list are in downtrend. All up trend counters are also likely to be under threat. Bull domination on Tuesday may terminate all the downtrend counters.

Buying opportunities exist in the SBI, Reliance Industries, Infosys, SAIL, Tata Steel and BHEL. Selling opportunities may exist in IDBI, Tata Motors, Satyam and Hindalco.

The best among the above is to buy Tata Steel. This counter is in downtrend. Bull move on Tuesday is likely to reverse the existing 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.