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K. Premkumar

Bears dominated Monday's trading activity. The sentiment reading of the tradable counters changed to bearish. Bull move on Tuesday is likely to change the sentiment reading to bullish.

On the other hand, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

Nifty futures

The September month contract opened with a bear gap of around 10 points from its previous close. The September month contract moved within a range of around 132 points making an intra-day low of 3335.65. It closed with a loss of around 131 points from its previous close.

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The long position in the September contract exited and entered short. The short exit and long entry levels are placed quite far away from its last traded price.

In the normal course of trading, these levels are unlikely to be triggered during trading on Tuesday.

Stock futures

The composition and ranking of the top-10 tradable counters had minor changes. Bajaj Auto gave way to Reliance Energy.

REL occupied eighth position in the top-10 tradable list. Maruti and BHEL moved up in the ranking and occupied first and second position respectively.

The top-3 tradable counters in this segment were Reliance, Tata Steel and Sterlite.

The exit levels for Bajaj Auto and i-flex are placed at 2,809.05 and 1,462.05 respectively.

Most of the counters in the top-10 tradable list are in downtrend.

The downtrend counter SBI is likely to be terminated during trading on Tuesday. There exists one opportunity on either side for Tuesday's trading.

The best is likely to selling in Satyam. This counter is in sideways mode. Bear move on Tuesday is likely to trigger the downtrend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. Most of the counters in the top-10 tradable list are in downtrend.

The downtrend counters i-flex and ICICI are likely to be under threat for Tuesday's trading. There are three selling and two buying opportunities for Tuesday's trading.

The best is likely to be selling in Reliance Industries. 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.

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