The Hindu Business Line : Bear domination

Monday’s trading witnessed bear domination. However, the sentiment reading of the tradable counters changed to bullish. Bear move on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment reading is likely to be strengthened with additional counters.

NIFTY FUTURES

The November month contract opened with a bear gap of around 66 points from its previous close. The November month contract moved within a range of around 130 points. The November month contract closed with a loss of around 95 points from its previous close.

The short position in the Nifty November month contract remains intact. The short exit and long entry levels are placed quite far from its last traded price. These levels are unlikely to be triggered during Tuesday’s trading activity.

STOCK FUTURES

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The composition and the ranking of the top-10 list had no changes. Except Reliance Capital, BHEL and ICICI Bank all other counters in the top-10 list are in uptrend. Except SBI and Tata Power all other uptrend counters are likely to be under threat for Tuesday’s trading. A lone buying opportunity is likely to exist in BHEL. There are ample selling opportunities for Tuesday’s trading. The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Tuesday is likely to reverse the trend in this counter.

CASH SEGMENT

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

Except Reliance Capital, SAIL, BHEL and Tata Steel all other counters are in uptrend. Except Reliance Energy and Tata Power 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 SAIL and Tata Steel. Buying opportunities are likely to exist in SAIL and Tata Steel. Selling opportunities are likely to exist in Reliance Industries, ICICI Bank, SBI and ONGC. The best candidate is selling in Reliance Industries. This counter is in uptrend. Bear domination on Tuesday is likely to reverse the existing 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.