The Hindu Business Line : Bear domination

BEARS gained control of Friday's trading activity. The sentiment reading of the tradable counters stands bearish. Bull domination on Monday is likely to change the sentiment reading to bullish. On the contrary, the prevailing bearish sentiment is likely to continue with added strength.

Nifty futures recommendation: The November contract opened around its previous close and thereafter steadily lost during the day's trading. The intra-day movement in the November contract was around 23 points. It closed lower with a loss of 21 points.

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The day's move had no impact on the recommended levels. Bearish trigger level for the November contract is now placed quite close to its current level. Bear pressure on Monday is likely to trigger the downtrend in the November contract. Bullish trigger level for the November contract remains unchanged.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remains undisturbed. The top three traded counters in this segment were Tata Steel, Maruti and Tata Motors.

Except for the downtrend in Tata Steel, all the other counters in the list are likely to be under threat. Selling opportunities are likely to exist in five counters. Buying opportunities are likely to exist in three counters.

The best bet is likely to be the selling in Satyam. Bearish trigger level for this counter is placed very close to its current closing value. Bear pressure on Monday is likely to initiate a fresh downtrend in Satyam.

Cash segment: There were no new entries or exits to the top-10 active counters list. The ranking of the list too remains the same with no major changes. Bears were successful in initiating the downtrend in the recommended counter - ONGC.

Bull domination on Monday could be a threat to most of the downtrend counters in the list. On the contrary, the prevailing uptrend counters are likely to be terminated. Bears are likely to have opportunity in five counters. Buying opportunities are likely to exist in two counters. Selling in Satyam is likely to be the best bet for Monday's trading. This counter is in the sideways mode.

Bear move on Monday has the potential to trigger the downtrend in Satyam.

(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.