The Hindu Business Line : Bear domination

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 in their favour. On the contrary, the prevailing bearish sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

The April contract opened with a bear gap of around 67 points from its previous close. The April contract moved within a range of around 147 points making an intraday low of 3585.30. The March contract closed with a loss of around 210 points from its previous close.

The April contract entered into a new short position. 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 of the top-10 tradable list had no changes. However, the ranking had minor changes. Bank of India moved up while Tata Motors moved down. The top-3 tradable counters in this segment were Reliance Industries, Infosys and ICICI.

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All the counters in the list are in downtrend. SBI is the only counter which is likely to be under threat for Tuesday's trading. There exists a lone buying opportunity in SBI for Monday's trading. This counter is in downtrend. Bull 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. SAIL, ITC, SBI and BHEL moved up in the ranking while TCS, Satyam, Tata Motors and ICICI moved down.

Most of the counters in the top-10 tradable list are in downtrend. TCS is the only downtrend counter, which is likely to be under threat for Tuesday's trading. On the other hand, the lone uptrend counter ITC is likely to be terminated. There exist one opportunity on either side for Tuesday's trading. The best among them is likely to be selling in ITC. 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.