The Hindu Business Line : Bear prevails

Bears prevailed in Friday’s trading activity. The sentiment reading of the tradable counters remain 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 continue.

NIFTY FUTURES

The August month contract opened with a bear gap of around 53 points from its previous close. The August month contract moved within a range of around 199 points. The August month contract closed with a loss of around 57 points from its previous close.

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The short position in the August Month Nifty Futures contract is undisturbed. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Monday’s trading activity.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However the ranking of the top-10 list had minor changes. Reliance Industries and SBI interchanged their positions. Tata Steel moved from sixth to fourth position in the list. Reliance Energy and IDBI moved one step lower in the list.

Except Reliance Industries and ICICI Bank all other counters in the list are in downtrend. The uptrend counter ICICI Bank is under threat for Monday’s trading. Bull move on Monday is likely to terminate SBI, Reliance Energy, BHEL and Century Textiles. Buying opportunities are likely to exist in SBI, Reliance Energy, BHEL and Century Textiles. A lone selling opportunity is likely to exist in ICICI Bank . The best among them is likely to be buying in SBI. This counter is in downtrend. Bull move on Monday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. Tata Steel moved from sixth to fourth position in the list. Reliance Energy and Infosys moved one step lower in the list. IDBI and ICICI Bank interchanged their positions in the list. The short exit level for HDFC is placed at 1934.95.

Except ICICI Bank all other counters in the list are in downtrend. The uptrend counter ICICI Bank is under threat for Monday’s trading. Bull move on Monday is likely to terminate Reliance Industries, SBI and Reliance Energy. Buying opportunities are likely to exist in Reliance Industries, SBI and Reliance Energy. A lone selling opportunity is likely to exist in ICICI Bank. The best among the above is likely to be buying in Reliance Industries. This counter is in downtrend. Bu ll 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.