The Hindu Business Line : Bear prevails

Bears prevailed 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 January month contract opened with a bear gap of around 39 points from its previous close. The January month contract moved within a range of around 775 points. The January month contract closed with a loss of around 532 points from its previous close.

The short position in the January month 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 no changes. However, the ranking of the top-10 list had minor changes. Reliance Energy and Reliance Industries interchanged their positions. SBI and Bank of India interchanged their position. The short exit level for ACC is placed at 866.05.

All the counters in the top-10 list are in downtrend. The short exit and long entry levels are placed quite far away from their last traded price. The best is likely to be buying in Bank of India. Bull move on Tuesday is likely to reverse the existing trend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had minor changes. SAIL and SBI made their ways to top-10 list pushing out Bank of India and BHEL. SAIL occupied fifth position in the list. SBI occupied seventh position in the list. IDBI moved one step lower in the list. Tata Steel moved from sixth to eighth position in the list. ITC moved from seventh to last position in the list. Tata Power moved one step higher in the list. The short exit level for Satyam, TCS, Hindalco, Bank of India and BHEL are placed at 385.70, 907.45, 185.05, 408.06 and 2285.05 respectively.

All the counters in the top-10 list are in downtrend. The short exit and long entry levels are placed quite far away from their last traded price. The best is likely to be buying in ICICI Bank. 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.