Date:15/02/2006 URL: http://www.thehindubusinessline.com/2006/02/15/stories/2006021502161500.htm

Back Bear domination

K. Premkumar

BEARS dominated over Tuesday's trading activity. The sentiment reading of the tradable counters changed to neutral. Further bear pressure on Wednesday is likely to change the sentiment reading in to bearish. On the other hand, it is likely to turn bullish.

Nifty futures recommendation: The February month contract opened with a bear gap of around 3 points. The February month contract moved within a range of around 31 points making an intra-day high of 3035. It closed with a loss of around 17 points from its previous close.

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The long position in the February month contract exited and entered short in the morning session. The exit and buy levels for the February month contract are placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Wednesday's trading.

Stock futures commendation: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Motors and State Bank interchanged their positions. The top-3 tradable counters in this segment were Hindustan Lever, Titan and VSNL.

All the uptrend and downtrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. There are ample opportunities on the buy side and five opportunities on the sell side. The best for Wednesday is likely to be selling in ONGC. This counter is in uptrend. Bear pressure on Wednesday 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. State Bank and Satyam went out of the list and gave way to ONGC and Tata Motors. Infosys moved down to fifth position and L&T moved up to second position.

All the uptrend and downtrend counters in the top-10 tradable list are likely to be terminated during Wednesday's trading. There are four 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 sideways mode. Bear pressure on Wednesday is likely to initiate a fresh downtrend 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.