The Hindu Business Line : Bear domination

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

Nifty futures

The February month contract opened with a bear gap of around 17 points from its previous close. The contract moved within a range of around 131 points making an intra-day low of 4035.60. It closed with a loss of around 140 points from its previous close.

The short position in the February month contract remains intact. The short exit and long entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during the normal course of trading during Tuesday.

Stock futures

The composition and ranking of the top-10 tradable list had minor changes. Bajaj Auto gave way to IDBI. IDBI occupied first position in the ranking. Tata Steel, SBI, ICICI, Reliance Industries and Reliance Capital moved down in the ranking, while Hindalco, VSNL and Satyam moved up. The top-3 tradable counters in this segment were Hindalco, Reliance Industries and Suzlon. The short exit level for MTNL, IDBI and Bajaj Auto are placed at 154.05, 96.95 and 3055.05, respectively.

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All the counters in the top-10 tradable list are in downtrend. Reliance Industries, SBI and Satyam are likely to be under threat for Tuesday's trading. There are three buying opportunities for Tuesday's trading. The best among them is likely to be buying in SBI. This counter is in downtrend. Bull move on Tuesday is likely to reverse the prevailing trend in this counter.

Cash segment

The composition and ranking of the top-10 tradable list had minor changes. ICICI gave way to Hindalco. Hindalco occupied sixth position in the ranking. Zee Tele moved up in the ranking, while Satyam, IDBI, Reliance Industries, SBI, Infosys and BHEL moved down. The short exit level for Suzlon and ICICI are placed at 1244.95 and 990.15, respectively.

All the counters in the top-10 tradable list are in downtrend. Satyam, Reliance Industries, SBI and Infosys are likely to be under threat for Tuesday's trading. There are four buying opportunities for Tuesday's trading. The best among them is likely to be buying in Infosys. This counter is in downtrend. Bull 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.