The Hindu Business Line : Bears prevail

Bears prevailed over the Monday's tug of war between bulls and bears. However, sentiment reading of the tradable counters remained bullish. Further bear domination on Tuesday is likely to change the sentiment reading in their favour. On the contrary, it is likely to turn bearish.

Nifty futures

The June month contract opened with a bull gap of around 32 points. However, they could not sustain their initial move and gave way to bear pressure during the later part of the day's trading. June month contract moved within an intra day range of 147 points. It closed with a loss of around 102 points from yesterday's close.

Bull move during the initial part of the day lead to the initiation of long position in the June month contract. However, newly initiated long position is likely to be under threat for Tuesday's trading. Short entry level is also placed quite nearer to the last traded price. Bear pressure during Tuesday is likely to reverse the prevailing trend in June month contract.

Stock futures

The composition and the ranking of the top-10 tradable list remained unchanged. The top-three tradable counters in this segment were Reliance, Tata Steel and Satyam Computers.

There are no downtrend counters in the list. All the uptrend counters in the list are likely to be under threat. There are no buying opportunities for Tuesday's trading. Selling opportunities are likely to exist in almost all the counters in the list. The best among them is likely to be selling in Ranbaxy. This counter is in uptrend. Bear pressure on Tuesday is likely to reverse the prevailing trend in this counter.

Cash segment

The composition and ranking of the top-10 tradable list had minor changes. VSNL went out of the list, while ITC gained the entry in to the top-10 list. ITC occupied first place while SAIL and Tata Motors interchanged their rankings.

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All the uptrend counters in the list are likely to be under threat for Tuesday's trading. On the other hand, the lone downtrend counter Reliance Capital is quite safe for Tuesday's trading. There are no buying opportunities for Tuesday's trading. Ample selling opportunities exist for Tuesday's trading. The best is likely to be selling in Reliance Industries. Bear pressure during Tuesday is likely to reverse the uptrend in Reliance Industries.

(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.