The Hindu Business Line : Bears prevail

Bears prevailed over Tuesday’s trading activity. The sentiment reading of the tradable counters remains 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

The January month contract opened with a bear gap of around 273 points from its previous close. The January month contract moved within a range of around 578 points. The January month contract closed with a loss of around 278 points from its previous close.

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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 Wednesday’s trading activity.

Stock futures

The composition and the ranking of the top-10 list had minor changes. MTNL made its way to top-10 list pushing out Bank of India. MTNL occupied last position in the list. Reliance Industries and Reliance Capital interchanged their positions. ONGC moved one step higher in the list. The short exit level for ACC and Bank of India are placed at 745.05 and 308.95 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 Reliance Energy. Bull move on Wednesday 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. ONGC and BHEL made their ways to top-10 list pushing out SBI and ITC. ONGC occupied fifth position in the list.

BHEL occupied ninth position in the list. SAIL moved from fifth to seventh position in the list. Tata Power moved one step lower in the list.

The short exit level for Satyam, Hindalco, Bank of India, BHEL, SBI and ITC are placed at 380, 175.05, 399.05, 2155.05, 2280.05 and 200.05 respectively.

Except Tata Steel, all other counters in the top-10 list are in downtrend. Bull move on Wednesday is likely to terminate downtrend in Reliance Energy. A lone buying opportunity is likely to exist in Reliance Energy.

A lone selling opportunity is likely to exist in Tata Steel.

The best is likely to be buying in Reliance Energy. This counter is in downtrend. Bull move on Wednesday 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.