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K. Premkumar

BEARS managed to gain control of Monday's trading activity. For the second successive trading day the prices of the tradable counters moved within a close band. The sentiment reading of the tradable counters stands mildly bearish. Bull domination on Tuesday is likely to reduce the bear count by a substantial margin. Otherwise, the prevailing bearish sentiment is likely to be further strengthened.

Nifty Futures Recommendation: June month contract opened with a bear gap of three points and went further down by another four points. Later on, bulls managed to recover partially. The June contract closed with a loss of three points with respect to Friday's close.

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Bears were successful in terminating the uptrend in the June contract. The long trade exited with a decent profit of 40 points. Both bullish and bearish trigger levels for the June contract are placed at a far away level. These levels are unlikely to be triggered on Tuesday.

Stock Futures Recommendation: The top-10 tradable list in this segment underwent a change. ONGC gained entry with the exit of Wipro. The ranking of the list had some changes.

Tata Engineering moved to the sixth position followed by Reliance Industries and Tata Steel. The exit level for the long position in Wipro is placed at 838.95.

Bull domination on Tuesday is likely to terminate the downtrend in Digital, Infosys, State Bank of India and Tata Steel. On the other hand, the uptrend in ONGC is likely to be under threat. Buying opportunities are likely to exist in Hindustan Petro, SBI, Tata Engineering and Tata Steel.

A lone selling opportunity is likely to exist in Reliance Industries. The best bet for Tuesday's trading is likely to be SBI. Bull domination on Tuesday is likely to initiate a fresh uptrend in this counter.

Cash Segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a minor change.

Mastek and Reliance Industries interchanged their positions.

None of the counters in the tradable list are in the uptrend. Bull domination on Tuesday could be a threat to the prevailing downtrend counters in the list.

Bears are likely to have opportunity in Punjab National Bank, Reliance Industries and Zee Tele.

Buying opportunities are likely to exist in Oriental Bank, Satyam Computer and State Bank. The best bet is likely to be Punjab National Bank.

This counter is in the sideways mode. Its sell level is placed very close to its current level. Bear pressure on Tuesday is likely to initiate 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 Chennai-based technical analyst and fund management consultant.

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