The Hindu Business Line : Bear domination

BEAR dominated over Friday's market activity. The sentiment reading of the tradable counters remains bearish. Bull domination on Monday is likely to change the sentiment reading in their favour. On the contrary, the bearish sentiment is likely to be further strengthened.

Nifty Futures Recommendation: The December-month contract opened with a bull gap of around 8 points and further went up by 5 points. However, Bulls could not capitalise on their initial momentum and gave way to bears. The December-month contract moved with in a range of around 60 points making an intra-day low of 2783.50. It closed with loss of around 43 points from its previous close.

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The short position in the December-month contract exited in the morning session. The long-entry level is place quite far away and the short-entry level is placed quite nearer from its last traded price. The short-entry level is likely to be triggered during Monday's trading.

Stock Futures Recommendation: The composition of the top-10 tradable list had no changes, However, the ranking of the list had minor changes. Tata steel and Reliance interchanged their positions. The exit level for ONGC is placed at 1136.95. The top three tradable counters in this segment were Reliance, State bank and Tata steel.

A lone up trend counter Satyam is likely to be terminated during Monday's trading. On the other hand, four down trend counters in the list are likely to be under threat. There are three opportunities on the buy side and four opportunities on the sell side. The best for Monday's trading is likely to be selling in Satyam. This counter is in up trend. 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 tradable list had minor changes. ITC Ltd went out of the list and ONGC got in to the list. Reliance and State bank interchanged their positions. The short exit level for ITC is placed at 143.05.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Monday's trading. On the other hand, three down trend counters in the list are likely to be terminated. There are three opportunities on the buy side and four opportunities on the sell side. The best is likely to be selling in Satyam. This counter is in side ways mode. Bear pressure on Monday is likely to initiate a fresh down 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.