The Hindu Business Line : Bear domination

Bears dominated Friday's trading activity. However, the sentiment reading of the tradable counters remains bullish. Bear move on Monday is likely to change the sentiment reading in their favour. On the contrary the prevailing bullish sentiment is likely to be further strengthened.

NIFTY FUTURES

The March contract opened with a bull gap of around 23 points from its previous close. However, the bulls could not sustain their initial momentum and gave way to bears. The March contract moved within a range of around 122 points making an intraday low of 3,658. The March contract closed with a loss of around 78 points from its previous close.

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The March contract entered into a new long position. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Monday's trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. ACC moved up in the ranking while Tata Steel moved down.

Most of the counters in the top-10 list are in uptrend. Except IDBI and Century Tex, other uptrend counters are likely to be under threat for Monday's trading. There are ample selling opportunities for Monday's trading. The best among them is likely to be selling in Hindalco. This counter is in sideways mode. Bear move on Monday is likely to initiate a fresh downtrend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. ACC, Satyam and Tata Steel moved up in the ranking while ICICI, SAIL, Zee Tele and Hindalco moved down.

There are seven uptrend counters and a lone downtrend counter in the top-10 tradable list. All the uptrend counters are likely to be under threat for Monday's trading. There are ample selling opportunities for Monday's trading. The best among them is likely to be selling in ACC. This counter is in sideways mode. Bear move on Monday 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.