The Hindu Business Line : Bear domination

Friday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters continues to remain bearish. Bull domination on Monday 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 April contract opened with a bull gap of around 12 points from its previous close. However, bulls were not able to sustain its initial momentum and gave way to bear domination.

The April contract moved within a range of around 178 points and closed with a loss of around 119 points from its previous close.

Bear move during the day reversed the long position in the Nifty April 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 Monday’s trading.

STOCK FUTURES

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes.

Tata Steel and ICICI Bank interchanged their position. BHEL and Hindalco interchanged their position.

Except 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 Monday’s trading.

On the other hand, bull move on Monday is likely to terminate SBI and Hindalco.

Buying opportunities are likely to exist in SBI and Hindalco. A lone selling opportunity is likely to exist in Tata Steel. The best is likely to be selling in Tata Steel.

This counter is in uptrend. Bear move on Monday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had no changes. There are five uptrend and three downtrend counters in the top-10 list. The uptrend counters SAIL and Tata Steel are likely to be under threat for Monday’s trading.

There are no buying opportunities for Monday’s trading. Selling opportunities are likely to exist in Reliance Capital, ICICI Bank, SAIL and Tata Steel.

The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Monday 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.