Back Bear domination
K. Premkumar
BEARS dominate over Friday's trading 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 prevailing bearish sentiment is likely to be further strengthened.
Nifty futures recommendation: The November month contract opened around its previous level. Bears were dominating the entire day leaving bulls with no opportunity. The November month contract moved with in a range of 58 points. It closed with a loss of around 58 points from its previous close.
Bear pressure on Friday initiated a fresh short position in the November month contract. The exit and the buy levels for the November month contract are placed quite far away. These levels are unlikely to be triggered during Monday's trading.
Stock futures recommendation: The composition and ranking of the top-10 tradable list had no changes. The top three tradable counters in this segment were Reliance, State Bank and Bharti Tele.
There is no uptrend counters. Most of the downtrend counters in the list are under threat for Monday's trading. The best for Monday's trading is likely to be the buying in Reliance.
Bull pressure on Monday is likely to initiate a fresh up trend in this counter.
Cash segment: The composition top-10 tradable list had no change. The ranking of the top-10 tradable list had a total revamp. Reliance Capital moved to third position and State Bank moved to sixth position.
Infosys and Ranbaxy interchanged their positions. Tata Steel occupies seventh position and SRF occupy eighth position the short exit level of ITC is placed at 116.25.
Four downtrend counters are likely to be under threat for Monday's trading. Buying opportunity is likely to exist in Infosys. Selling opportunities exist in Ranbaxy and Tata Steel. The best for Monday's trading is likely to be selling in Tata Steel. This counter is in side ways. Bear domination on Monday is likely to initiate fresh down 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.
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