The Hindu Business Line : Bear domination

Bears dominated Friday's trading activity. The sentiment reading of the tradable counters changed to bearish. Bull move on Monday is likely to change the sentiment reading in their favor. On the contrary, the bearish sentiment is likely to be strengthened with additional counters.

Nifty futures

The July month contract opened with a bear gap of around 17 points from Thursday's close. The July month contract moved within a range of around 84 points making an intra-day low of 2921. It closed with a loss of around 82 points from its previous close.

The long position in the July month contract was terminated and entered short. The short exit and long entry levels are placed quite far away from Friday's last traded price. In the normal course of trading during Monday, these levels are unlikely to be triggered.

Stock Futures

The composition and ranking of the top-10 tradable list had minor changes. Hindalco moved out giving way to Tata Motors. Tata Motors occupied second position while others moved down in their ranking.

The exit level for Hindalco is placed at 161.05. The top-3 tradable counters in this segment were Tata Steel, Reliance and Satyam.

Most of the counters in the list are in downtrend. The lone uptrend counter Ranbaxy is likely to be terminated during Monday's trading. Most of the downtrend counters are under threat for Monday's trading. There are four buying opportunities and five selling opportunities for Monday's trading. The best is likely to be buying in Nalco. This counter is in downtrend. Bull move on Monday is likely to reverse the prevailing trend in this counter.

Cash Segment

The composition and ranking of the top-10 tradable list had no changes. Most of the counters in the list are in downtrend while Satyam and Reliance capital are in uptrend. Both the uptrend counters are likely to be terminated during Monday's trading.

On the other hand, two of the downtrend counters - Tata Steel and Infosys - are likely to be under threat for Monday's trading.

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Two buying opportunities and one selling opportunity exist for Monday's trading.

The best is likely to be buying in Tata Steel. This counter is in downtrend. Bull move on Monday is likely to initiate a fresh uptrend in this counter.

(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.