The Hindu Business Line : Bear domination

Monday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters changed to 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.

Nifty Futures

The April month contract opened with a bear gap of around 69 points from its previous close. The April month contract moved within a range of around 220 points. The April month contract closed with a loss of around 256 points from its previous close.

Bear move during the day reversed long position in the Nifty April 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.

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. ICICI Bank and Tata Steel interchanged their position.

Except Reliance Industries, Tata Steel and BHEL all other counters in the list are in downtrend. All the uptrend counters are likely to be under threat for Tuesday’s trading. There are no buying opportunities for Tuesday trading. Selling opportunities are likely to exist in Reliance Industries, Tata Steel and BHEL. The best among the above is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Tuesday is likely to reverse the existing trend in this counter.

Cash segment

The composition and the ranking of the top-10 list had minor changes. SBI made its way to top-10 list pushing out BHEL. HDFC and Suzlon interchanged their position. Infosys and Tata Steel interchanged their position. The long exit level for BHEL is placed at 1979.95.

Except Reliance Industries, ICICI Bank, Suzlon, SBI and Tata Steel all other counters in the top-10 list are in downtrend. The uptrend counter Tata Steel is likely to be under threat for Tuesday’s trading. There are no buying opportunities for Tuesday’s trading. Selling opportunities are likely to exist in Reliance Industries, ICICI Bank, SBI and Tata Steel. The best is likely to be selling in ICICI Bank. This counter is in sideways mode. Bear move on Tuesday is likely to initiate a fresh downtrend 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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