The Hindu Business Line : Bulls march ahead

BULLS were in total command of Monday's trading activity. Their dominance for the third successive trading day left the bears stranded. Monday's market action terminated the downtrend counters in the tradable list. The sentiment reading of the tradable counters remains bullish with no downtrend counters. Irrespective of bull or bear domination on Tuesday, the prevailing sentiment is likely to continue with a slight change in its value.

Nifty Futures recommendation: The September month contract moved within a band of 20 points. Bulls were in total control of the day's proceedings. The September contract closed with a gain of 18 points with respect to Friday's close.

Click here for table

The uptrend in the September contract remained intact. The exit level for the long position is locked up with a nominal profit of 12 points. Bear domination on Tuesday has the potential to terminate the uptrend in the September contract. The bearish trigger level for the September contract is still placed far away.

Stock Futures recommendation: The composition of the top-10 tradable list in this segment had a change. i-Flex gained entry with the exit of ACC. Hindustan Petro moved to the top slot and Satyam Computer moved to the fourth position followed by State Bank. Trading activity in BHEL was quite impressive on Monday, with more than 3,900 trades. The uptrend in ACC is likely to be terminated at 219.45.

Except for Hindustan Petro, all the other counters in the list are in the uptrend. Bear domination on Tuesday could threaten most of the prevailing uptrend counters in the list. Traders are left with a lone opportunity for Tuesday's trading. This is likely to exist on the short side of Tata Steel. This counter is in the uptrend. Its exit and bearish trigger levels are placed quite closer to its last traded price. Bear domination on Tuesday has the potential to trigger these levels.

Cash segment: The composition as well as the ranking of the top-10 tradable list remains unchanged. The uptrend in Digital is likely to be terminated at 533.95.

For Tuesday, the uptrend in State Bank, Tata Engg and Tata Steel is likely to be under threat. There is unlikely to exist any buying opportunities for Tuesday's trading. Selling opportunities are likely to exist in SAIL and Tata Steel. Between the two, the best is likely to be Tata Steel. This counter is in the uptrend. Its exit and sell trigger levels are placed closer to its current level. Bear pressure on Tuesday has the potential to reverse the prevailing 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 Chennai-based technical analyst and fund management consultant.

Article E-Mail :: Comment :: Syndication

Stories in this Section
BSE shifts over 600 cos to `Z' category

Bulls march ahead

Ucal Fuel in demand

Champdany scrip price rise raises eyebrows

Outlook positive on M&M, i-flex

Asset management cos go on hiring spree

Rally gets booster, courtesy pharma cos