The Hindu Business Line : Bears prevail

Trading activity witnessed bear pressure on Tuesday. However, the sentiment reading of the tradable counters changed to bullish. Bear move on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to continue undisturbed.

NIFTY FUTURES

The September month contract opened with a bull gap of around 13 points from its previous close. However, bulls were not able to sustain their initial momentum and gave way to bear pressure. The contract moved within a range of around 55 points. It closed with a loss of around 11 points from its previous close.

Bull move during the initial part of the day’s trading reversed the prevailing trend in the September month contract. The long exit and short entry levels are placed quite nearer to its last traded price. Bear domination on Wednesday is likely to reverse the prevailing trend in Nifty September month contract.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. NTPC made its way to top-10 list pushing out Tata Motors.

NTPC occupied last position in the list. IDBI moved from third to sixth position in the list. Reliance Industries moved one step lower in the list.

Reliance Capital moved two steps higher in the list. SBI and Reliance Energy moved one step higher in the list. The short exit level for Tata Motors is placed at 707.05.

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Except ICICI Bank, all other counters in the list are in uptrend. Except NTPC, all other uptrend counters are likely to be under threat for Wednesday’s trading.

A lone buying opportunity is likely to exist in ICICI Bank. Selling opportunities are likely to exist in all the counters except NTPC. The best among the above is likely to be selling in Reliance Industries. This counter is in uptre nd.

Bear move on Wednesday is likely to reverse the prevailing 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. IDBI moved from fifth to seventh position in the list. Reliance Capital and Reliance Energy moved one step higher in the list. The short exit level for Satyam is placed at 445.05.

Except ICICI Bank and Infosys, all other counters in the list are in uptrend. All the uptrend counters are likely to be under threat for Wednesday’s trading. Buying opportunity is likely to exist in ICICI Bank. There are ample selling opportunities for Wednesday’s trading.

The best among the above is likely to be selling in ICICI Bank. This counter is in sideways mode. Bear move on Wednesday is likely to trigger the short 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.