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K. Premkumar

THE market witnessed volatile movement during Monday's trading activity. Neither bulls nor bears could gain much from the day's trading. Bear domination during the initial hours of trading led to the initiation of downtrend in many counters in the list. The market sentiment reading of the tradable counters turned bearish. Bull domination on Tuesday is likely to change the sentiment reading in their favour. Otherwise, the prevailing sentiment is likely to continue with a slight change in its value.

Nifty Futures Recommendation: The near month November contract moved down around 21 points in the initial hours of trading. Thereafter, bulls made a strong recovery and wiped out their initial losses during the day. The November contract moved within a band of 37 points. It closed with a gain of 14 points with respect to Friday's close.

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The entry for the long position has been moved closer. Bull domination on Tuesday is likely to initiate fresh uptrend in November contract. However, bearish entry level is still placed quite far away. It is unlikely to be triggered during Tuesday's trading activity.

Stock Futures Recommendation: The top-10 tradable list underwent a minor change. Ranbaxy gained entry in place of Infosys. The ranking of the list remains unchanged. The top-three traded counters in the list are Satyam Computer, Tata Steel and Reliance Industries.

Bull domination on Tuesday is likely to terminate all the downtrend counters in the tradable list. However, uptrend counters are likely to remain safe. Buying opportunities are likely to exist in almost six counters in the list. Selling opportunities are unlikely to exist for Tuesday's trading. The best bet is likely to be State Bank. Its bullish trigger level is placed very near to its closing price. Bull pressure on Tuesday is likely to trigger this level.

Cash Segment: The composition of top-10 tradable list remains unchanged. The ranking had a change with Infosys and State Bank interchanging their positions. Bull pressure on Tuesday is likely to terminate all the downtrend counters in the list except Punjab National Bank. The lone uptrend counter Satyam Computer is likely to remain undisturbed.

Bears are likely to have opportunity in SAIL and Reliance Industries. Buying opportunities are likely to exist in State Bank, Tata Engg and Oriental Bank. The best among the above is likely to be the selling in SAIL. This counter is in the sideways mode. Its sell level is placed very near to its current level. Bear move on Tuesday is likely to initiate 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 Chennai-based technical analyst and fund management consultant.

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