The Hindu Business Line : Bears prevail

Bears prevailed during Monday’s trading activity despite volatile movement. The sentiment reading of the tradable counters changed to 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 strengthened with additional counters.

Nifty Futures

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The January month contract opened with a bull gap of around 22 points from its previous close. The January month contract moved within a range of around 367 points. The January month contract closed with a loss of around 137 points from its previous close.

Bear move during the day reversed the long position in the January month 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 Tuesday’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 MTNL. Ranking of the list had no changes. The short exit level for MTNL is placed at 133.45.

Except Reliance Energy, ICICI Bank, IDBI and Bank of India all other counters in the top-10 list are in downtrend. Bull move on Tuesday is likely to terminate all the downtrend counters. Buying opportunities are likely exist in Reliance Industries, Reliance Capital, NTPC, Tata Steel, SBI and ONGC. There are no selling opportunities for Tuesday’s trading. The best is likely to be buying in Reliance Industries. This counter is in downtrend. 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 no changes. Except Reliance Energy, Reliance Capital, ICICI Bank and SAIL all other counters in the top-10 list are in downtrend. Bull move on Tuesday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in all the downtrend and sideways counters. There are no selling opportunities for Tuesday’s trading. The best among the above is likely to be buying in Tata Power. 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.