The Hindu Business Line : Range-bound movement

The sentiment reading of the tradable counters remains bearish. Bull domination on Monday is likely to reduce the bear count by a considerable margin, thereby, resulting a change in the sentiment reading.

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Nifty futures recommendation: The July contracts opened with a bull gap of 11 points and went up further 18 points.

Bears were unable to make any impact during the day's trading.

The July contract moved within a band of 27 points registering an intra-day low of 2167.15. It closed with a gain of 24 points over previous close.

The short position in the July contract remains intact. However, this is likely to be under threat for Monday.

Bullish trigger level is placed around the same leveland this is placed quite far away.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had some changes. ONGC moved to the sixth position followed by Tata Motors and NTPC.

Bull pressure on Monday could be a threat to most of the downtrend counters in the list. On the contrary, the uptrend in NTPC and Tata Steel is likely to be terminated.

Bulls are likely to have opportunity in Infosys, Satyam and State Bank. Selling opportunities are likely to exist in NTPC and Tata Steel.

Bullish entry level for State Bank is the nearest level among the above counters. Bull move on Monday is likely to initiate a fresh uptrend in State Bank.

Cash segment: The composition of the top-10 tradable list underwent a change. Tata Tele Service gained entry with the exit of TCS.

The downtrend in TCS is likely to terminate at Rs 1329.45.

None of the counters in the list is in the uptrend.

For Monday, the downtrend in IPCL, Reliance Energy and Satyam is likely to be under threat.

Selling opportunities are likely to exist in four counters. Buying opportunities are likely to exist in three counters.

Selling in Infosys is likely to be the best bet for Monday's trading. This counter is in the sideways mode.

Sell level for this counter is placed closer to the last traded price. Bear pressure on Monday has the potential to trigger the downtrend 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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