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K. Premkumar

Bear dominated 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 is likely to be strengthened with additional counters.

The February month contract opened with a bear gap of around 64 points from its previous close. The contract moved within a range of around 309 points and closed with a loss of around 309 points from its previous close.

The short position in the February month Nifty 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.

The composition and ranking of the top-10 list had no changes. All the counters in the top-10 list are in downtrend. The short exit and long entry levels are placed quite far away from their last traded price. The nearest level is likely to be buying in MTNL. Bull move on Tuesday is likely to reverse the existing trend in this counter.

The composition of the top-10 tradable list had no changes. However the ranking of the top-10 list had minor changes. SBI and IDBI interchanged their position. BHEL and Infosys interchanged their position.

Except SBI, BHEL and Infosys, all other counters in the top-10 list are in downtrend. There are no buying opportunities for Tuesday’s trading. Selling opportunities are likely to exist in SBI and BHEL. The best among the above is likely to be selling in BHEL. This counter is in sideways mode. Bear move on Tuesday 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.

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