The Hindu Business Line : Bears prevail

BEARS exerted further pressure over the initial hours of Friday's trading activity. The sentiment reading of the tradable counters stands strongly bearish.

Bull domination on Monday has the potential to change the sentiment reading in their favour. Otherwise, the prevailing bearish sentiment is likely to continue with a slight change in its value.

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Nifty Futures Recommendation: During the initial hours of the day's trading the March contract lost around 13 points. Thereafter, bulls made a strong comeback and wiped out their losses. The March contract moved within a band of 34 points. It closed with a gain of 20 points over Thursday's close.

The downtrend in the March contract remains intact. The exit and bullish trigger levels for the March contract have been moved closer to the current level. Bull move on Monday is likely to reverse the prevailing downtrend in the March contract.

Stock Futures Recommendation: There were no new entries or exits to the top-10 active counters list. The ranking of the list had a change. State Bank moved to the top slot and Tata Steel moved to the second position.

Bull pressure on Monday is likely to terminate most of the downtrend counters in the list. On the other hand, the lone uptrend counter-ONGC is likely to be under threat. Buying opportunities are likely to exist in as much as eight counters. A lone selling opportunity is likely to exist in ONGC.

The best bet is likely to be the buying in Tata Motors. The exit and buy level for this counter is placed closer to the last traded value. Bull move on Monday has the potential to reverse the downtrend in Tata Motors.

Cash Segment: The composition of the top-10 tradable list underwent a change. Bharti Tele gained entry with the exit of Bank of India. The ranking of the list had some changes. SAIL moved to the sixth position followed by Tata Steel and Satyam.

None of the counters in the list are in the uptrend. Except for the downtrend in Bharti Tele and PNB, all the other counters in the list are likely to be under threat. Bulls are likely to have opportunity in seven counters. Selling opportunities are likely to exist in two counters.

Buying in Infosys is likely to be the best for Monday's trading. This counter is in the sideways mode. Bullish trigger level for this counter is placed just above the closing price. Bull pressure on Monday is likely to trigger the uptrend in Infosys.

(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.

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