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Bears upbeat

K. Premkumar

BEARS exerted further pressure on Thursday's trading. This left the bulls with no opportunity to recover. The sentiment reading of the tradable counters stands neutral. Thus favouring neither the bulls nor the bears.

Bull domination on Monday is likely to change in favour of the bulls. On the contrary, the prevailing sentiment is likely to continue.

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Nifty futures recommendation: Bears were in total control of the day's proceedings. But they could not gain much from the day's trading. The December contract moved within a close band of 11 points. It closed with a marginal loss of 2 points with respect to Wednesday's close.

The long position in the November contract is likely to be closed around 1,067 levels. This leaves the trade with a substantial profit of around 68 points.

Fresh entry levels are given for December contract. Both the bullish and bearish trigger levels are placed quite far away from its current level. This is unlikely to be triggered on Monday.

Stock futures recommendation: The composition of the top-10 counters underwent a few changes. Sterlite Optical and Tata Engineering gained entry with the exit of Dr Reddy's and Reliance Petro.

Traders are likely to have ample opportunities on the long side. This is likely to exist in as much as 7 counters.On the other hand, selling opportunity is likely to exist in ITC and Reliance Industries. The best is likely to be the buying in Satyam Comp uters.

This counter is in the sideways mode. Its buy level is placed quite closer to its last traded price. Bull move on Monday is likely to initiate a fresh uptrend in this counter.The downtrend in L&T is likely to be under threat. Entry levels are given for t he December contract. Hence, orders should be placed only in the December contract.

The open positions in the November contract for all securities in the futures segment will be closed out with the cash closing price.

Cash segment: Wipro tops the list in the cash segment followed by Himachal Futuristic and Global Tele.

Opportunities are unlikely to exist in the cash segment.

Bull domination on Monday is likely to be a threat to the existing downtrend in Dr Reddy's and Hughes Soft.

So, traders holding positions in the above counters will have to closely monitor their price movements.

Note: All price levels refer to the absolute value of the shares traded in the NSE.

The author is a Chennai-bassed technical analyst and fund management consultant.