Date:23/03/2005 URL: http://www.thehindubusinessline.com/2005/03/23/stories/2005032301111300.htm

Back Bears dominate day's proceedings

K. Premkumar

BEARS were in total command of Tuesday's trading activity. The sentiment reading of the tradable counters stands bearish. Bull domination on Wednesday is likely to reduce the bear count by a considerable margin thereby resulting a change in the sentiment.

Nifty futures recommendation: The March contract opened with a bear gap of two points and made steady losses during the day's trading. Bears capitalised the day's entire move. The March contract moved in a band of 31 points. It closed with a loss of 28 points over the previous close.

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Tuesday's market action had no impact on the recommended levels. The exit level for the March contract has been moved slightly closer. Bull domination on Wednesday has the potential to terminate the downtrend. Bullish trigger level for the March contract is placed far away.

Stock futures recommendation: The composition of the top-10 tradable list remains unchanged. The ranking of the list had a minor change. State Bank moved to the top slot. State Bank, Tata Steel and Reliance were the top three traded counters in this segment.

Bull move on Wednesday is likely to terminate the downtrend in ONGC and Tata Steel. On the other hand, the lone uptrend counter — Infosys is likely to be under threat. Selling opportunities are likely to exist in four counters. Buying opportunities are likely to exist in two counters. The best bet is likely to be the selling in Satyam. Bearish trigger level for this counter is just a rupee away from the last traded value. Bear pressure on Wednesday is likely to trigger the downtrend in Satyam.

Cash segment: The top-10 tradable list in this segment underwent a change. Bank of India gained entry with the exit of Bharti Tele. The ranking of the list remains the same with no major changes.

Bull pressure on Wednesday could be a threat to the downtrend in Bank of India and ONGC. On the contrary, the uptrend in Infosys is likely to be terminated. Bears are likely to have opportunity in three counters. Buying opportunities are likely to exist in two counters. Selling in Satyam is likely to be the best for Wednesday's trading. Sell level for this counter is placed quite closer to the current level. Bear move on Wednesday has the potential 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.