The Hindu Business Line : Bears prevail

FRIDAY'S trading activity witnessed lacklustre movement. However, bears managed to gain from the day's trading. The sentiment reading of the tradable counters stands bearish.

Bull domination on Monday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bearish sentiment is likely to be further strengthened.

Nifty futures recommendation: During the open, the September contract gained six points thereafter bears took charge of the day's trading.

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The September contract moved within a band of 23 points registering an intra-day low of 1590. It closed with a loss of four points with respect to its previous close.

Initial up move initiated the uptrend in the September contract, however this was terminated during the later part of the day's trading.

The trade exited with a loss of 15 points.

Bearish trigger level for the September contract has been moved closer to its current level.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list.

Maruti, Tata Motors and Tata Steel were the top three traded counters in this segment.

Bull pressure on Monday is likely to terminate most of the downtrend counters in the tradable list.

Otherwise, the uptrend in ONGC and Satyam is likely to be under threat.

For Monday, five opportunities are likely to exist on either side of trading.

Selling in Satyam is likely to be the best bet for Monday's trading. This counter is in the uptrend.

Bear move on Monday has the potential to reverse the prevailing uptrend in Satyam.

Cash segment: The most active counters list in this segment remains intact.

The ranking of the list underwent a change. Reliance and Tata Motors interchanged their positions.

Except for the downtrend in Maruti, all the other counters in the list are likely to be under threat.

Bulls are likely to have opportunity in seven counters.

Selling opportunities are likely to exist in five counters.

Buying in State Bank is likely to be the best for Monday's trading.

Bullish trigger level for this counter is placed within a rupee from its closing price.

Bull pressure on Monday is likely to trigger the uptrend in State Bank.

(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.