The Hindu Business Line : Bear domination

Bears dominated Tuesday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull move on Wednesday is likely to change the sentiment reading in its favour.

On the other hand, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

Nifty futures

The September month contract opened with a bull gap of around five points from its previous close. However, the bulls could not sustain the initial momentum and gave way to bears. September contract moved within a range of around 92 points making an intra-day low of 3429.70. It closed with a loss of around 65 points from its previous close.

The long position in the September month contract exited and entered short. The short exit and long entry levels are placed quite far away from its last traded price. In the normal course of trading during Wednesday, these levels are unlikely to be triggered.

Stock futures

The composition and ranking of the top-10 tradable list had minor changes. ACC and Bajaj Auto gave way to ONGC and Reliance Energy Ltd. ONGC and Reliance Energy occupied sixth and seventh positions respectively.

Tata Motors and SBI moved up in the ranking while others moved down. The top-three tradable counters in this segment were Reliance, Tata Steel and Satyam.

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The exit levels for ACC and Bajaj auto are placed at 966.05 and 2818.05 respectively.

Most of the counters in the top-10 tradable list are in downtrend. The downtrend counter SBI is likely to be under threat for Wednesday's trading.

On the other hand, the lone uptrend counter Satyam is likely to be terminated. There are three opportunities on either side of the trading. The best is likely to be selling in Infosys. This counter is in sideways mode. Bear move on Wednesday is likely to initiate a fresh downtrend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. There are five downtrend and five uptrend counters in the top-10 tradable list. All the uptrend counters are likely to be under threat for Wednesday's trading.

On the other hand, the downtrend counter i-flex Solutions is likely to be terminated. There are five selling opportunities and a lone buying opportunity for Wednesday's trading.

The best is likely to be selling in HDFC. This counter is in uptrend. Bear move on Wednesday is likely to trigger the downtrend 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.

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