The Hindu Business Line : Bear domination

Bears dominated the Monday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull pressure on Tuesday is likely to neutralise the sentiment reading. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

Nifty futures recommendation

The May month contract moved within a range of around 368 points making an intraday low of 2901.95. It closed with a loss of around 204 points from its previous close.

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The short position in the May month contract remains intact. The short exit level is placed quite far away with a locked profit of around 259 points. In the normal course of trading, the exit and entry levels are unlikely to be triggered during Tuesday's trading.

Stock futures recommendation

The composition and the ranking of the top-10 tradable list had no changes. The top-three tradable counters in this segment were Reliance, Tata Steel, and Satyam.

All the counters are in downtrend. All the exits are placed quite far away. Nearest exit levels are placed for Satyam, Ranbaxy and ACC.

Bull domination on Tuesday is likely to terminate downtrend in the above counters. The best opportunity for Tuesday's trading is likely to be buying in Satyam. Bull pressure on Tuesday 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. Hindlever, Infosys and SAIL moved out of the list and gave way to ACC, Gujambcem and State Bank. VSNL and Tata Motors moved down to eighth and last positions respectively.

The short exit levels for Hindlever, Infosys and SAIL are placed at 249.90, 3097.75 and 79.95 respectively.

All the exits levels are placed quite far away from its last traded price. Nearest levels are placed for State Bank, Reliance Industries and Gujambcem.

The best bet for Tuesday's trading is likely to be buying in State Bank. Bull move on Tuesday is likely to trigger the uptrend 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.