Date:27/12/2005 URL: http://www.thehindubusinessline.com/2005/12/27/stories/2005122702481500.htm

Back Bears prevail

K. Premkumar

BEARS prevailed over Monday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull domination on Tuesday is likely to change the sentiment reading in its favour. On the contrary, the bearish sentiment is likely to be further strengthened.

Nifty Futures Recommendation: The December month contract opened with a bear gap of around 17 points. It moved within a range of around 66 points making an intraday low of 2737.10. It closed with a loss of around 54 points from its previous close.

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The December month contract entered short in the morning session.

The exit and buy levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Tuesday's trading.

Stock Futures Recommendation: The composition of the top-10 tradable list had no changes.

However, the ranking of the list had minor changes. REL and Tata Motors interchanged their positions.

The top three tradable counters in this segment were VSNL, Reliance Capital and State Bank.

There are no uptrend counters in the top-10 tradable list. On the other hand, six downtrend counters in the list are likely to be terminated during Tuesday's trading.

There are three opportunities on the buy side. The best for Tuesday's trading is likely to be buying in Tata Motors. This counter is in downtrend. Bull move on Tuesday is likely to reverse the existing trend in this counter.

Cash Segment: The composition and the ranking of the top-10 tradable list had minor changes.

ONGC went out of the list and Tata Steel got into the list. Satyam and VSNL interchanged their positions. The short exit level for ITC is placed at 140.05.

For Tuesday's trading six downtrend counters in the list are likely to be under threat. There are no uptrend counters in the list. Infosys and Tata Motors are likely to have opportunities on the buy side for Tuesday's trading. The best is likely to be buying in Tata Motors. This counter is in side ways mode. Bull pressure on Tuesday is likely to initiate a fresh uptrend 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.