The Hindu Business Line : Bear domination

Monday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters remains bearish. Bull move on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the current bearish sentiment is likely to be further strengthened with additional counters.

Nifty futures

The October month contract opened with a bear gap of around two points from its previous close. The October month contract moved within a range of around 278 points. The October month contract closed with a loss of around 120 points from its previous close.

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The long position in the October Month contract is undisturbed. The long exit and short entry levels are placed quite faraway from its last traded price. These levels are unlikely to be triggered during Tuesday’s trading.

Stock futures

The composition and the ranking of the top-10 list had no changes. Except Reliance Energy all other counters in the top-10 tradable list are in downtrend. Bull domination on Tuesday is likely to terminate ICICI Bank. A lone buying opportunity is likely to exist in ICICI Bank. There are no selling opportunities for Tuesday’s trading. The best is likely to be buying in ICICI Bank. This counter is in downtrend. Bull move on Tuesday is likely to reverse the existing trend in this counter. The long exit level for Infosys is placed at 1940.45.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. Except Reliance Energy and Infosys all other counters in the top-10 tradable list are in downtrend. The uptrend counter Infosys is likely to be under threat for Tuesday’s trading. On the other hand, bull domination on Tuesday is likely to terminate ICICI Bank. Buying opportunity is likely to exist in ICICI Bank. Selling opportunity is likely to exist in Infosys. The best is likely to be selling in Infosys. This counter is in uptrend. Bear pressure on Tuesday 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.