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K. Premkumar

BULLS extended their dominance over Monday's trading activity. Their dominance for the second successive trading day left the bears stranded. The market sentiment reading of the tradable counters remains bullish with no downtrend counters. Bear domination on Tuesday is likely to neutralise the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to continue with a slight change in its value.

Nifty futures recommendation: The near month October contract opened 3 points above Friday's close. Bulls were in total command of the day's proceedings. The October contract moved within a band of 24 points. It closed with a gain of 17 points.

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Monday's market action had no impact on the recommended levels. The exit and bearish trigger levels for the October contract are still placed far away. These levels are unlikely to be triggered on Tuesday.

Stock futures recommendation: The composition of the top-10 tradable list in this segment remains unchanged. Satyam Computer moved to the top slot followed by Hindustan Petro. Trading activity in Maruti was quite hectic on Monday with more than 4,000 trades.

Except for Ranbaxy, all the other counters in the list are in the uptrend. Bear domination on Tuesday is likely to terminate most of the uptrend counters in the list. Selling opportunities are likely to exist in Infosys and Ranbaxy. A lone buying opportunity is likely to exist in Ranbaxy. The best among the above is likely to be Infosys. Its exit and bearish trigger levels are placed quite close to its last traded price. Bear move on Tuesday has the potential to trigger these levels.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had few changes. Infosys moved to the third position and Lupin to the ninth position. The uptrend in Ranbaxy and Tata Motors is likely to be terminated at Rs 934.95 and Rs 299.95.

All counters in the tradable list are in the uptrend. For Tuesday, the uptrend in Infosys, Satyam Computer and Tata Steel are likely to be under threat. Bears are likely to have opportunity in Infosys and Tata Steel. Between the two, the best bet is likely to be Infosys. Its exit and sell levels are placed closer to its current level. Bear pressure on Tuesday is likely 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.

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