The Hindu Business Line : Bear run arrested

Bear run was arrested during Monday’s trading activity. However, 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 sentiment reading is likely to be strengthened with additional counters.

Nifty Futures

The November month contract opened with a bear gap of around 129 points from its previous close. However, bears were not able to sustain their initial momentum and gave way to bull domination during the later part of the day’s trading.

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The November month contract moved within a range of around 206 points. The November month contract closed with a gain of around 14 points from its previous close.

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

Stock futures

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. NTPC and Tata Steel interchanged their positions. IDBI moved from last to eighth position in the list. ICICI Bank and BHEL moved one step lower in the list.

Except SBI, Tata Power and NTPC all other counters in the top-10 list are in downtrend. Bull domination on Tuesday is likely to terminate all the downtrend counters except ICICI Bank. Buying opportunities are likely to exist in Reliance Energy, Reliance Capital, Reliance Industries, Tata Steel, IDBI and BHEL. There are no selling opportunities for Tuesday’s trading.

The best is likely to be buying in BHEL. This counter is in downtrend. Bull move on Tuesday is likely to reverse the existing trend in this counter.

Cash segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. SAIL moved from fifth to seventh position in the list. ICICI Bank and SBI moved one step higher in the list.

Except Tata Power and SBI, all other counters in the list are in downtrend. Bull domination on Tuesday is likely to terminate all the downtrend counters except Tata Steel and ONGC.

Buying opportunities are likely to exist in Reliance Energy, Reliance Industries, Reliance Capital, Tata Power, ICICI Bank, SAIL and BHEL. There are no selling opportunities for Tuesday’s trading.

The best is likely to be buying in BHEL. This counter is in downtrend. Bull move 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.