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K. Premkumar

Bull move during Monday’s trading arrested the previous bear run. However, the sentiment reading of the tradable counters continues to remain bearish. Bull domination 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.

The March month contract opened with a bear gap of around 75 points from its previous close. The March month contract moved within a range of around 202 points. The March month contract closed with a gain of around 52 points from its previous close.

The downtrend in the Nifty March 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.

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Tata Steel and NTPC interchanged their position. SBI occupies fourth position in the top-10 tradable list.

All the counters in the top-10 list are in downtrend except Tata Steel. There are four down trend counters Reliance Industries, NTPC, Hindalco and Infosys are under threat for Tuesday. Buying opportunities are likely to exist in Reliance Industries, NTPC, Hindalco and Infosys. There are no selling opportunities for Tuesday’s trading. The best among the above 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.

The composition and ranking of the top-10 list had minor changes. Infosys went out from the top-10 tradable list and is replaced by Tata Steel.

Reliance Energy and Reliance Industries interchanged their positions. SAIL and BHEL interchanged their positions.

Except SAIL, HDFC and Tata Steel, all other counters in the top-10 list are in downtrend. There are no threats for Tuesday’s trading. A lone buying opportunity is likely to exist in SAIL. The best among the above is likely to be buying in SAIL. This counter is in downtrend. 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.

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