The Hindu Business Line : Bear onslaught

BEARS were in total command of Friday's trading activity. The sentiment reading of the tradable counters stands strongly bearish with no uptrend counters. Irrespective of bull or bear domination on Monday, the prevailing bearish sentiment is likely to continue with a slight change in value.

Nifty futures recommendation: The near month April contract opened with a bear gap of 18 points and fell steeply further. Bulls were unable to make any impact during the day's trading. The April contract moved within a band of 65 points. It closed lower with a loss of 81 points over Wednesday's close.

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Bear domination during the day led to the reversal of the uptrend in the April contract. The long trade exited with a loss of around 25 points. In the normal course of trading on Monday, the initiated short position is likely to continue. The exit and bullish trigger levels for the April contract are placed far away.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a total revamp. Tata Steel, Infosys and Reliance were the top three traded counters in this segment.

All the counters in the list are in the downtrend. Bull pressure on Monday could be a threat to the downtrend in PNB and Tata Motors.

Entry levels for all the counters in the list are placed slightly far away. The nearest entry level is for Tata Motors. Bull domination on Monday has the potential to reverse the prevailing downtrend in Tata Motors.

Cash segment: The composition of the top-10 active counters list remains unchanged. The ranking of the list underwent a change. Infosys moved to the fifth position and ONGC to the sixth position.

Except for Maruti, all the other counters in the list are in the downtrend. Bull move on Monday is likely to terminate the prevailing downtrend in PNB, Reliance and Tata Motors.

For Monday, a lone opportunity is likely to exist on either side of Maruti. Bearish trigger level for Maruti is placed quite closer to the last traded price. Bear pressure on Monday is likely to initiate a fresh downtrend in Maruti.

(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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