The Hindu Business Line : Bears prevail

Bears prevailed over Monday’s trading activity. The sentiment reading of the tradable counters remains bearish. Bull domination on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment reading is likely to be strengthened.

Nifty Futures

The March month contract opened with a bear gap of around 165 points from its previous close. The March month contract moved within a range of around 120 points. The March month contract closed with a loss of around 270 points from its previous close.

Bear move during the day reversed the uptrend in the Nifty March month 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 Tuesday’s trading.

Stock Futures

Click here for table

The composition and the ranking of the top-10 list had minor changes. Satyam made its way to top-10 list pushing out BHEL. Reliance Industries and Reliance Energy interchanged their positions. Tata Steel moved from fourth to sixth position in the list. ICICI Bank and SBI moved one step higher in the list. Hindalco and NTPC interchanged their positions. The short exit level for BHEL is placed at 1838.70.

All the counters in the top-10 list are in downtrend. Bull move on Tuesday is likely to terminate NTPC, Satyam and Infosys. Buying opportunities are likely to exist in NTPC, Satyam and Infosys.

There are no selling opportunities for Tuesday’s trading. The best is likely to be buying in Infosys. This counter is in downtrend. Bull move on Tuesday is likely to reverse the existing trend in this counter.

Cash segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Industries moved from second to fourth position in the list. HDFC moved from last to sixth position in the list.

All the counters in the top-10 list are in downtrend. All exit and entry levels are placed quite far away from their last traded prices.

The nearest level is likely to be buying in BHEL. Bull move on Tuesday 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.

More Stories on : Technical Analysis

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page