The Hindu Business Line : Bears prevail

THE sentiment reading of the tradeable counters stands neutral. Bear domination on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the sentiment reading is likely to turn bearish.

Nifty futures recommendation: During the open, the April contract moved by seven points. Bears made an instant recovery and took charge of the day's proceedings. The April contract moved within a band of 31 points. It closed with a loss of 20 points.

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The long position in the April contract remained intact. However, this is likely to be under threat for Wednesday. The exit level is placed within three points from its closing value. Bearish trigger level for the April contract has also been moved closer. Bear domination on Wednesday is likely to reverse the prevailing trend in the April contract.

Stock futures recommendation: The composition of the top-10 tradeable list remains unchanged. The ranking of the list remains the same with no major changes. Tata Steel, Reliance and State Bank were the top three traded counters in this segment. Wednesday's market action resulted in triggering the downtrend in the recommended counter-Satyam.

Bear domination on Wednesday could be a threat to the prevailing uptrend counters in the list. The downtrend counters in the list are likely to be safe.

Selling opportunities are likely to exist in GAIL, M&M, State Bank and Tata Power. A lone buying opportunity is likely to exist in ONGC. The best among the above is likely to be the selling in M&M. This counter is in the uptrend. Bear move on Wednesday has the potential to reverse the prevailing trend in this counter.

Cash segment: There were no new entries or exits to the top-10 tradeable list. The ranking of the list had some changes. Maruti moved to the third position followed by ONGC and Reliance.

Bears were successful in initiating the downtrend in the recommended counter-Infosys.

For Wednesday, the prevailing uptrend counters and the downtrend in Reliance are likely to be under threat.

Bears are likely to have GAIL, IPCL and State Bank. Buying opportunities are likely to exist in ONGC and Reliance.

Selling in IPCL is likely to be the best bet for Wednesday's trading. This counter is in the sideways mode. Its bearish trigger level is placed very close to its current level.

Bear pressure on Wednesday is likely to initiate the 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 Chennai-based technical analyst and fund management consultant.