The Hindu Business Line : Bears prevail

Bears prevailed over Monday’s trading activity. 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 current sentiment reading is likely to be further strengthened with additional counters.

Nifty Futures

The October month contract opened with a bear gap of around 118 points from its previous close. The October month contract moved within a range of around 175 points. The October month contract closed with a loss of around three points from its previous close.

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The short position in Nifty October Month contract is intact. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Tuesday’s trading activity.

Stock futures

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. ICICI Bank and IDBI interchanged their positions in the list.

Except ICICI Bank and ONGC, all other counters in the top-10 list are in downtrend. Bull domination on Tuesday is likely to terminate Reliance Capital, Reliance Industries, Tata Power, NTPC and IDBI. Buying opportunities are likely to exist in Reliance Capital, Reliance Industries, Tata Power, NTPC and IDBI. There are no selling opportunities for Tuesday’s trading. The best is likely to be buying in IDBI. This counter is in downtrend. Bull domination on Tuesday is likely to reverse the trend in this counter.

Cash segment

The composition and the ranking of the top-10 list had no changes. Except ICICI Bank, all other counters in the top-10 tradable list are in downtrend. Bull domination on Tuesday is likely to terminate Tata Power, Infosys, SBI and BHEL. Buying opportunities are likely to exist in Tata Power, Infosys, SBI and BHEL. There are no selling opportunities for Tuesday’s trading. The best is likely to be buying in SBI. This counter is in downtrend. Bull move on Tuesday is likely to reverse the 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.