The Hindu Business Line : Bears prevail

Bears prevailed over 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 strengthened with additional counters.

NIFTY FUTURES

The August month contract opened with a bear gap of around 121 points from its previous close. The August month contract moved within a range of around 114 points. The August month contract closed with a loss of 62 points from its previous close.

Bear domination during the day initiated a fresh downtrend in the August Month Nifty Futures contract. The short exit and long entry levels are placed nearer to its last traded price. These levels are likely to be triggered during Monday’s trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. Century Textiles made its way to top-10 list pushing out Hindalco. Century Textiles occupied last position in the list. SBI and Reliance Capital interchanged their positions in the list. ICICI Bank and ACC interchanged their positions in the list. The short exit level for Hindalco is placed at 153.75.

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All counters in the list are in downtrend. Bull domination on Monday is likely to terminate all the counters in the list. There are ample buying opportunities for Monday’s trading. The best among them is likely to be buying in Reliance Energy. This counter is in downtrend. Bull move on Monday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. ICICI Bank and HDFC made their way to top-10 list pushing out SAIL and ACC. ICICI Bank and HDFC occupied ninth and last positions in the list. Reliance Energy moved from second to fourth position in the list. SBI and Reliance Capital moved one step higher. BHEL moved one step higher and ITC moved two steps higher in the list. The short exit level for Hindalco is placed at 155.05. The long exit level for ACC is placed at 1011.05.

All counters in the list are in downtrend. Bull domination on Monday is likely to terminate all the counters in the list. Buying opportunities are likely to exist in all the counters in the list. The best among the above is likely to be buying in Infosys. This counter is in downtrend. Bull move on Monday 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.