Date:21/12/2005 URL: http://www.thehindubusinessline.com/2005/12/21/stories/2005122103081500.htm

Back Bears prevail

K. Premkumar

BEARS prevailed over Tuesday's Trading activity. However, the sentiment reading of the tradable counters remains bullish. Bear domination on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the bullish sentiment is likely to be further strengthened.

Nifty Futures Recommendation: The December month contract opened with a bear gap of around 3 points. The December month contract moved with in a range of around 29 points making an intra-day low of 2813. It closed with a loss of around 18 points from its previous close.

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The long position in the December month contract exited in the morning session. The sell level is placed quite nearer and the buy level is placed quite far away from its last traded price. Bear move on Wednesday is likely to initiate a fresh down trend in the December month contract.

Stock Futures Recommendation: The composition of the top-10 tradable list had no changes. However the ranking of the list had changes. Tata Motors and Tata Steel interchanged their positions. The top three tradable counters in this segment were State Bank of India, Reliance and Tata Steel.

All the up trend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. There are three opportunities on the buy side and ample opportunities on the sell side. The best for Wednesday's trading is likely to be selling in Reliance. This counter is in side ways mode. Bear move on Wednesday is likely to initiate a fresh down trend in this counter.

Cash Segment: The Composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Infosys and Reliance interchanged their positions. The exit level for Tata Steel is placed at 371.75.

All the up trend counters in the top-10 tradable list are likely to be terminated during Wednesday's trading. There are no down trend counters in the list. There are three opportunities on the buy side and ample opportunities on the sell side. The best is likely to be selling in Reliance. This counter is in side ways mode. Bear pressure on Wednesday is likely to initiate a 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.