The Hindu Business Line : Bear domination

Bear dominated over Monday’s trading activity. 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 continued.

NIFTY FUTURES

The December month contract opened with a bear gap of around 52 points from its previous close. The contract moved within a range of around 283 points and closed with a loss of around 291 points from its previous close.

The short position in the December month Nifty contract is intact. 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 Tuesday’s trading activity.

STOCK FUTURES

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The composition of the top-10 list had minor changes. MTNL made its way to top-10 list pushing out ONGC. MTNL occupied last position in the top-10 list. The short exit level for ONGC is placed at 1222.05.

All the counters in the top-10 list are in downtrend. The buying and selling levels of the top-10 counters are quite far away from their last traded price. The nearest level is likely to be buying in GAIL. Bull move on Tuesday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. Suzlon made its way to the top-10 list, pushing out IDBI. Suzlon occupied last position in the list. SBI moved one step higher in the list.

All the counters in the top-10 list are in downtrend. Bull move on Tuesday is likely to terminate Infosys. There are no selling opportunities for Tuesday’s trading. A lone buying opportunity is likely to exist in Infosys. The best is likely to be buying in Infosys. This counter is in downtrend. Bull move on Tuesday is likely to reverse the 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.