The Hindu Business Line : Bears prevail

Bears prevailed over Monday’s trading activity. However, the sentiment reading of the tradable counters changed to sideways. Further, bear move on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the sentiment reading is likely to turn bullish.

NIFTY FUTURES

September month contract opened with a bull gap of around 11 points from its previous close. However, bulls could not sustain their initial move. Bulls gave way to bears during the later part of the day trading, allowing them to make an intra-day low of 4481.10. The contract moved within a range of around 63 points. It closed with a loss of 29 points from its previous close.

Bear move during the day led to reversal of the long position in the September month Nifty contract. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Tuesday’s trading.

STOCK FUTURES

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The composition and ranking of the top-10 tradable list had minor changes. NTPC made its way to top-10 list pushing out ACC. NTPC occupied last position in the list. Century Textiles and ICICI Bank interchanged their positions. The long exit level for ACC is placed at 1106.10.

Reliance Capital, Reliance Energy, Reliance Industries and ICICI Bank are in uptrend in the list. SBI, IDBI, Century Textiles, BHEL and NTPC are in downtrend. Except Reliance Capital all the other uptrend counters in the list are likely to be under threat for Tuesday’s trading. On the other hand, bull domination on Tuesday is likely to terminate all the downtrend counters except NTPC.

Buying opportunities exist in SBI, Tata Steel, IDBI, Century Textiles and BHEL. Selling opportunities are likely in Reliance Energy, Reliance Industries, Tata Steel and ICICI Bank. The best among the above is to sell ICICI Bank. This counter is in uptrend. Bear move on Tuesday is likely to reverse the 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. Reliance Energy and SBI interchanged their positions. BHEL moved two steps lower in the list. SAIL and Infosys moved one step higher in the list.

Reliance Industries, Reliance Capital, Reliance Energy, ICICI Bank and BHEL are in uptrend in the list. SBI, IDBI, SAIL and Infosys are in downtrend. Except Reliance Capital all other uptrend counters are likely to be under threat for Tuesday’s trading. On the other hand, bull domination on Tuesday is likely to terminate all the downtrend counters except Infosys.

Buying opportunities exist in SBI, Tata Steel, IDBI and SAIL. Selling opportunities exist in Reliance Industries, Reliance Energy, ICICI Bank, Tata Steel and BHEL. It may be best to sell BHEL. This counter is in uptrend. Bear move on Tuesday is likely to reverse the 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.