The Hindu Business Line : Bull domination

Bulls dominated Monday's trading activity. However, 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 bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The January contract opened with a bull gap of around 9 points from its previous close. It moved within a range of around 51 points making an intra-day high of 4123.20 and closed with a gain of around 12 points from its previous close.

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

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. IDBI, MTNL and Tata Steel moved up in the ranking while Satyam and Reliance Capital moved down.

There are six downtrend and four uptrend counters in the top-10 tradable list. Except Satyam, other downtrend counters are likely to be under threat for Monday's trading. On the other hand, the uptrend counters ICICI Bank, MTNL and Tata Motors are likely to be terminated. There are five buying opportunities and three selling opportunities for Tuesday's trading.

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The best among them is likely to be selling in MTNL. This counter is in uptrend. Bear move on Tuesday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. BHEL moved up while ONGC and M&M moved down in the ranking. The long exit level for Zee Tele is placed at 295.05.

There are seven downtrend counters and three uptrend counters in the top-10 tradable list. Except Satyam, other downtrend counters are likely to be under threat for Tuesday's trading. On the other hand, all the uptrend counters are likely to be terminated. There are six buying and three selling opportunities for Tuesday's trading.

The best among them is likely to be selling in ICICI Bank. This counter is in uptrend. Bear move on Tuesday is likely to reverse the prevailing 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.