The Hindu Business Line : Bear domination

Bears dominated over Friday’s market activity. The sentiment reading of the tradable counters remains bearish. Bull domination on Monday is likely to change the sentiment reading in their favour.

On the contrary, the current sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

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The February contract opened with a bear gap of around 44 points from its previous close. The February contract moved within a range of around 63 points and closed with a loss of around 102 points from its previous close.

Bear move during the day reversed the long position in the February Nifty contract. 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 Monday’s trading.

STOCK FUTURES

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

Except Tata Steel, Hindalco and Infosys all other counters in the top-10 list are in downtrend. The uptrend counters Tata Steel and Infosys are likely to be under threat for Monday’s trading. On the other hand, bull move on Monday is likely to terminate all the downtrend counters except Reliance Capital and ICICI Bank.

Buying opportunities are likely to exist in Reliance Energy, Reliance Industries, NTPC, SBI and ONGC. Selling opportunities are likely to exist in Tata Steel and Infosys. The best among the above is likely to be selling in Infosys.

This counter is in uptrend. Bear move on Monday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. Tata Steel made its way to top-10 list pushing out Satyam. SBI and Suzlon interchanged their positions. The short exit level for HDFC is placed at 2640.05. The long exit level for Satyam is placed at 435.45.

Except SAIL and Tata Steel all other counters in the top-10 list are in downtrend. All the uptrend counters are likely to be under threat for Monday’s trading. On the other hand, bull move on Monday is likely to terminate all the downtrend counters except Reliance Capital and ICICI Bank.

Buying opportunities are likely to exist in Reliance Energy, Reliance Industries, BHEL, Infosys, SBI and Suzlon. Selling opportunities are likely to exist in SAIL and Tata Steel.

The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Monday is likely to reverse the existing 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.