The Hindu Business Line : Bear domination

Tuesday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters changed to bearish. Bull move on Wednesday 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

Click here for table

The November month contract opened with a bear gap of around 59 points from its previous close. The contract moved within a range of around 183 points and closed with a loss of around 125 points from its previous close.

Nifty November contract entered fresh downtrend during the day’s trading. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Wednesday’s trading activity.

STOCK FUTURES

The composition of the top-10 list had minor changes. Bank of India made its way to top-10 list pushing out Tata Steel. Bank of India occupied last position in the list. The long exit level for Tata Steel is placed at 849.95.

Reliance Energy, Reliance Capital and NTPC are in uptrend in the top-10 list. Reliance Industries, Andhra Bank, IDBI, BHEL and ICICI Bank are in downtrend in the top-10 list. The uptrend counters Reliance Energy and NTPC are likely to be under threat for Wednesday’s trading. On the other hand, bull move on Wednesday is likely to terminate Reliance Industries. A lone buying opportunity is likely to exist in Reliance Industries.

Selling opportunities are likely to exist in Reliance Energy, SBI, NTPC and Bank of India. The best is likely to be selling in SBI. This counter is in sideways mode. Bear move on Wednesday is likely to initiate a fresh downtrend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. IDBI made its way to top-10 list pushing out Tata Steel. IDBI occupied last position in the list. Infosys moved from ninth to seventh position in the list. SAIL and ONGC moved one step lower in the list. The long exit level for Tata Steel is placed at Rs 849.95.

Except Reliance Energy, Reliance Capital and SAIL all other counters in the list are in downtrend. Bull move on Wednesday is likely to terminate downtrend in Reliance Industries. A lone buying opportunity is likely to exist in Reliance Industries. Selling opportunities are likely to exist in Reliance Energy and SAIL. The best is likely to be selling in Reliance Energy. This counter is in sideways mode. Bear move on Wednesday is likely to initiate a fresh downtrend 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.