The Hindu Business Line : Bear domination

Bear's dominated Monday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull move on Tuesday is likely to change the sentiment reading in their favour.

On the contrary, the prevailing sentiment reading is likely to be further strengthened.

Nifty futures

The July month contract opened with a bear gap of around 28 points from Friday's close. The July contract moved within a range of around 98 points making an intra-day low of 2971.35. It closed with a loss of around 115 points from its previous close.

The short position in the July contract remains intact. The short exit and long entry levels are placed quite far away from Monday's last traded price. In the normal course of trading during, Tuesday these levels are unlikely to be triggered.

Stock Futures

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

Most of the counters in the list are in downtrend. Bull domination on Tuesday is likely to terminate the downtrend in Infosys and BHEL. On the other hand, the lone uptrend counter ACC is under threat for Tuesday's trading. There are two opportunities on either side of the trading for Tuesday.

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The best is likely to be selling in ACC. This counter is in uptrend. Bear move on Tuesday is likely to reverse the prevailing trend in this counter. The exit level for Tata Steel is placed at 505.75.

Cash segment

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Infosys and Reliance interchanged their positions, while Satyam moved above Reliance Capital. All the counters in the list except Reliance Capital are in downtrend.

The downtrend counters ITC and Infosys are likely to be under threat for Tuesday's trading. There exists two buying opportunities.

The best is likely to be selling in Reliance Capital. This counter is in sideways mode. Bear move on Tuesday is likely to initiate a fresh 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 technical analyst and fund management consultant.