Back Marginal loss
K. Premkumar
BEARS extended further pressure over Monday's trading activity. The sentiment reading of the tradable counters stands mildly bullish. Bear move on Tuesday is likely to reduce the bull count by a considerable margin thereby resulting a change in the sentiment reading.
Nifty futures recommendation: The near month March contract opened two points above its previous close and went further by another seven points. Later on, bears took charge of the day's proceedings and wiped out their early losses. The March contract moved within a band of 22 points. It closed with a loss of 10 points over Friday's close.
Monday's market action had no impact on the recommended levels. The trend in the March contract remains sideways. Entry levels for the March on either side are placed slightly far away. In the normal course of trading on Tuesday, these levels are unlikely to be triggered.
Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list underwent a change. Ranbaxy and Satyam interchanged their positions. Trading activity in TCS was quite hectic on Monday.
Bear pressure on Tuesday could be a threat to the prevailing uptrend counters in the list. On the other hand, the downtrend in Infosys and Ranbaxy are likely to be terminated. Selling opportunities are likely to exist in six counters. Buying opportunities are likely to exist in five counters. The best is likely to be the selling in State Bank. This counter is in the sideways mode. Bearish trigger level for this counter is placed quite closer to the last traded value. Bear move on Tuesday has the potential to trigger the downtrend in State Bank.
Cash segment: The composition of the top-10 active counters list remains unchanged. The ranking of the list had some changes. Andhra Bank moved to the fourth position followed by ONGC and Tata Steel.
Most of the counters in the list are likely to be under threat. Bears are likely to have opportunity in six counters. Buying opportunities are likely to exist in four counters. Selling in Satyam is likely to be the best bet for Tuesday's trading. Sell level for this counter is placed just below the closing price. Bear pressure on Tuesday is likely to initiate a fresh downtrend in Satyam.
(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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