The Hindu Business Line : Bear domination

Friday’s market witnessed bear domination. However the sentiment reading of the tradable counters remains bullish. Bear move on Monday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be strengthened.

NIFTY FUTURES

The September contract opened with a bull gap of around 26 points from its previous close. However, the initial bull move is not sustained and gave way to bear making an intraday low of 4503. The September contract moved within a range of around 76 points and closed with a loss of 14 points from its previous close.

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The long position in the September month contract is remains intact. The long exit and short entry levels are placed nearer from its last traded price. These levels are likely to be triggered during Monday’s trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However the ranking of the top-10 list had minor changes. State Bank occupies third position of the top-10 list and Tata Steel moved to down to fifth position. Century Textiles and ICICI Bank interchanged their positions.

Except IDBI and Reliance Capital, all other counters in the list are under threat for Monday’s trading. Lone buying opportunities exist in BHEL. On the other hand there are ample selling opportunities on the sell side.

The best candidate is lilely to be selling in Tata Steel. This counter is in sideways mode. Bear move on Monday is likely to initiate a fresh down 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 a total rewamp. Infosys moved down to tenth position and State Bank occupied third position in the top-10 list. Tata steel moved down to sixth position.

Tata steel, BHEL, SAIL and Infosys are the opportunities on buy side. On the other hand, selling opportunities are likely to exist in Relaince Industries, State Bank, Reliance Energy and ICICI bank. Except IDBI and Reliance Capital, all other counters in the list are under threat for Monday’s trading.

The best is likely to be selling in Tata Steel. This counter is in sideways. The bear move on Monday is likely to trigger the sell level for 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.