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K. Premkumar

BEARS gained control of Friday's trading activity. The sentiment reading of the tradable counters stands bearish. Bull domination on Monday is likely to terminate most of the downtrend counters in the list thereby resulting a change in the sentiment reading. Otherwise, the prevailing bearish sentiment is likely to continue with added strength.

Nifty Futures Recommendation: The near month April contract opened with a bull gap of five points and went further by another four points. Bulls failed to capitalise on it as they yielded to bear pressure. The April contract moved within a band of 32 points registering a low of 2015.10. It closed lower with a loss of 16 points over previous close.

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Bear domination on Friday resulted in reversing the uptrend in the April contract. The long trade exited with a loss of 23 points. In the normal course of trading on Monday, the initiated short position is unlikely to be disturbed. Bullish trigger level for the April contract is placed slightly away from the current level.

Stock Futures Recommendation: The composition of the top-10 tradable list had two changes. Infosys and PNB gained entry with the exit of Bank of India and Tata Tea. The ranking of the list had some changes. Tata Motors moved to the top slot and ONGC to the fifth position. The downtrend in Bank of India and Oriental Bank is likely to terminate at 101.10 and 310.45, respectively.

Except for the downtrend in Infosys, all the other counters in the list are likely to be under threat. For Monday, a lone opportunity is likely to exist in State Bank on either side of trading. Sell level for this counter is placed closer to the last traded value. Bear move on Monday has the potential to initiate a fresh downtrend in State Bank.

Cash Segment: There were no new entries or exits to the top-10 active counters list. The ranking of the list too remains intact. Friday's market action resulted in initiating the downtrend in the recommended counter-PNB.

Bull move on Monday is likely to terminate most of the downtrend counters in the list. On the other hand, the lone uptrend counter-Tata Motors is likely to be under threat. Bears are likely to have opportunity in four counters. Buying opportunities are likely to exist in two counters. Selling in SAIL is likely to be the best bet for Monday's trading. This counter is in the sideways mode. Bearish trigger level for this counter is placed within a rupee from the closing price. Bear pressure on Monday is likely to trigger the downtrend in SAIL.

(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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