The Hindu Business Line : Bears dominate

Bears dominated Tuesday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull move on Wednesday is likely to change the sentiment reading to bullish. On the other hand, the bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The November month contract opened with a bull gap of around 6 points from its previous close. It moved within a range of around 50 points making an intra-day low of 3735.20. It closed with a loss of around 16 points from its previous close.

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The long position in the November month contract remained intact. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during trading on Wednesday.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Tata steel, Reliance Industries and State Bank of India.

Most of the counters in the top-10 tradable list are in downtrend. All the downtrend counters are likely to be under threat for Wednesday's trading. On the other hand, the three up-trend counters are likely to be terminated. There are ample buying opportunities and four selling opportunities for Wednesday's trading. The best is likely to be buying in Maruti. This counter is in down trend. Bull move on Wednesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. Reliance Industries and SBIN gave way to Tata Motors and ICICI. Tata Motors occupied seventh position and ICICI ninth position respectively. Tata Steel and Infosys moved down, while L&T and Satyam moved up in the ranking. The exit levels for Reliance capital, HDFC, Reliance Industries and SBIN are placed at 576.45, 1452.95, 1218.20 and 1065.95 respectively.

There are six up-trend and four downtrend counters in the top-10 tradable list. Except Hind lever, all the up-trend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. On the other hand, all the downtrend counters are likely to be terminated. There are five opportunities on either side for Wednesday's trading. The best is likely to be selling in Infosys. This counter is in uptrend. Bear move on Wednesday is likely to trigger the downtrend in this counter.

(Note: All price levels refer to the absolute value of the shares traded on the National Stock Exchange. There is risk of loss in trading.)

The author is a technical analyst and fund management consultant.