The Hindu Business Line : Bear domination

Further bear move on Monday is likely to change the sentiment reading in their favour. On the contrary, the sentiment reading is likely to change in the favour of bulls.

NIFTY FUTURES

The October month contract opened with a bear gap of around 15 points from its previous close. The contract moved within a range of around 143 points and closed with a loss of around 89 points from its previous close.

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

STOCK FUTURES

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Tata Steel and SBI interchanged their positions. ICICI Bank and Tata Power interchanged their positions.

Reliance Capital and Reliance Industries are in uptrend in the top-10 list. SBI, IDBI, ICICI Bank and Infosys are in downtrend in the top-10 tradable list.

All the uptrend counters are likely to be under threat for Monday’s trading. On the other hand, bull domination on Monday is likely to terminate ICICI Bank and Infosys. Buying opportunities are likely to exist in ICICI Bank and Infosys. Selling opportunities are likely to exist in Reliance Capital, Reliance Industries, Tata Steel, NTPC and Tata Power.

The best among the above is likely to be selling in Reliance Industries. This counter is in up trend. Bear move on Monday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 list had minor changes. However, the ranking of the top-10 list had no changes. BHEL made its way to top-10 list pushing out SAIL. The long exit level for SAIL is placed at 219.95.

Reliance Industries, Reliance Capital and BHEL are in uptrend in the top-10 list. Infosys, SBI and IDBI are in downtrend in the top-10 list.

The uptrend counter Reliance Capital is likely to be under threat for Monday’s trading. On the other hand, bull domination on Monday is likely to terminate Infosys. Buying opportunities are likely to exist in Infosys and ICICI Bank.

Selling opportunities are likely to exist in Reliance Capital, Tata Power, ICICI Bank and Tata Steel. The best is likely to be selling in ICICI Bank. This counter is in sideways mode. Bear move on Monday is likely to trigger 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.