The Hindu Business Line : Bear onslaught

THE sentiment reading of the tradable counters stands absolutely bearish. Bull domination on Wednesday is likely to reduce the bear count to a bare minimum. Otherwise, the prevailing bearish sentiment is likely to continue with a slight change in its value.

Nifty Futures Recommendation: The near month May contract opened on a weak note and witnessed a steep fall during the initial moments of the day's trading. Bears were in supreme command till the fag end of the day's trading. The May contract moved within a band of 75 points and closed lower on a strong bearish note.

The short position is locked-up with a decent profit of around 40 points. In the normal course of trading on Wednesday, the downtrend is unlikely to be disturbed. The exit and bullish trigger levels for the May contract are placed far away.

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Stock Futures Recommendation: The composition of the top-10 tradable list changed. ACC gained entry with the exit of GAIL. The top three traded counters in this segment were Tata Steel, Reliance and State Bank. The exit level for the short position in GAIL is placed at 210.35.

Bull move on Wednesday is likely to terminate most of the downtrend counters in the tradable list. Bear pressure prevailing in the market has placed the entry levels for all the counters at a far away level. The nearest entry level is for ONGC on the long side. Strong bull wave on Wednesday has the potential to reverse the prevailing downtrend in ONGC.

Cash Segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had some changes. Tata Motors moved to the fourth position followed by Satyam and State Bank. For Wednesday, the downtrend in Infosys, ONGC, Satyam and State Bank are likely to be under threat. Traders are left with a lone opportunity for Wednesday's trading. This is likely to exist on the long side of Infosys. This counter is in the downtrend. Its exit and bullish trigger levels are placed quite closer to its last traded value. Bull domination on Wednesday is likely to trigger the 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 Chennai-based technical analyst and fund management consultant.