The Hindu Business Line : Bear domination

Trading activity witnessed bear domination on Tuesday. The sentiment reading of the tradable counters changed to bearish. Bull move on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be continued.

Nifty futures

The August month contract opened with a bull gap of around 30 points from its previous close. The contract moved within a range of around 209 points. It closed with a loss of around 147 points from its previous close.

Bear domination during the day initiated a fresh downtrend in the August Month Nifty Futures contract.

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The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Wednesday’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. IDBI and Tata Steel interchanged their positions.

All the counters in the list are in downtrend. All the short exit and long entry levels are placed quite far away from the last traded price. The nearest buy level is placed for BHEL. This counter is in downtrend. Bull domination du ring Wednesday is likely to reverse the position in BHEL.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes.

Infosys and Tata Steel interchanged their positions. ICICI Bank and BHEL interchanged their positions. IDBI and Suzlon interchanged their positions. The short exit level for ITC is placed at 158.05.

Except Suzlon all other counters in the list are in downtrend. The uptrend counter Suzlon is likely to be under threat in Wednesday’s trading. There are no buying opportunities for Wednesday’s trading.

A lone selling opportunity is likely to exist in Suzlon. The best among the above is likely to be selling in Suzlon. This counter is in uptrend. Bear move on Wednesday 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.