The Hindu Business Line : Bear domination

Friday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters changed to bearish. Bull move on Monday 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 January contract opened with a bear gap of around 70 points from its previous close. The January contract moved within a range of around 228 points and closed with a loss of around 212 points from its previous close.

Bear move during the day reversed the long position in the January contract. 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 Monday’s trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 list had minor changes. ONGC made its way to top-10 list pushing out Tata Motors.

Reliance Energy moved from first to third position in the list. Reliance Industries and Reliance Capital moved one step higher in the list. Tata Steel moved from ninth to seventh position in the list. The short exit level for ACC is placed at 951.55.

All the counters in the top-10 list are in downtrend. Bull move on Monday is likely to terminate SBI.

There are no selling opportunities for Monday’s trading. A lone buying opportunity is likely to exist in SBI. Bull move on Monday is likely to reverse the existing trend in SBI.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. Bank of India made its way to top-10 list pushing out SBI. Reliance Capital and ICICI Bank interchanged their positions. IDBI moved from seventh to fifth position in the list.

Tata Power moved from sixth to last position in the list. The short exit level for Satyam, TCS and Hindalco are placed at 402.05, 953.35 and 193.70 respectively.

Except ITC all other counters are in downtrend in the top-10 list. ITC is likely to be under threat for Friday’s trading. There are no buying opportunities for Monday’s trading.

A lone selling opportunity is likely to exist in ITC. This counter is in uptrend. Bear move on Monday 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.