The Hindu Business Line : Range-bound movement

MONDAY'S trading witnessed range bound movement. However, bulls managed to gain from the day's trading. The sentiment reading of the tradable counters stands bullish. Bear domination on Tuesday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to continue with a slight change in its value.

Nifty futures recommendation: The near month April contract opened three points lower and went further down by another 18 points. Bulls were unable to make any impact during the day's trading. The April contract moved within a band of 21 points registering a high of 2062.90. It closed with a loss of 18 points over Friday's close.

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The uptrend in the April contract remains intact. The long position is likely to be under threat for Tuesday as the exit level is placed within four points from the closing value. Bearish trigger level is placed slightly away from the current level. In the normal course of trading, the bearish level is unlikely to be triggered.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had some changes. Tata Steel moved to the third position followed by Reliance and State Bank. For those still holding long position in Infosys may do so with the stop loss placed at 2221.95.

Except for the lone downtrend counter - Tata Steel, all the other counters in the list are likely to be under threat. Bulls are unlikely to have any opportunity for Tuesday's trading. Selling opportunities are likely to exist in six counters. The nearest entry level is for Oriental Bank. This counter is in the uptrend. Bear domination on Tuesday has the potential to reverse the prevailing uptrend in Oriental Bank.

Cash segment: The composition as well as the ranking of the top-10 tradable counters remains unchanged. Bulls were successful in triggering the uptrend in the recommended counter - Andhra Bank.

Bear move on Tuesday is likely to terminate most of the uptrend counters in the list. The lone downtrend counter- Tata Steel is likely to be safe. Selling opportunities are likely to exist in PNB, SAIL and State Bank. A lone buying opportunity is likely to exist in ONGC. The best among the above is likely to be the buying in ONGC. Bullish trigger for this counter is placed very close to the current level. Bull pressure on Tuesday is likely to initiate a fresh uptrend in ONGC.

(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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