The Hindu Business Line : Bull domination

Bears could not have any say in the day's proceedings. Bull domination during the day turned sentiment reading neutral. Bull domination on Wednesday is likely to turn the sentiment reading bullish otherwise the prevailing sentiment is likely to continue.

Nifty futures recommendation: Market opened with a bull gap of around 1 point and thereafter went up by another 25 points. Bears could not control the bull onslaught. It closed at the end of the day with a bullish note with a gain of around 26 points from previous close.

Bull pressure during the day terminated the downtrend in December contract. However, both the bullish and bearish levels are placed far away and are unlikely to be triggered during Wednesday's trading activity.

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Stock futures recommendation: The composition of the top-10 tradable list in this segment had no change. The ranking had minor change with Ranbaxy at fifth position and ACC occupying seventh position in the tradable list.

Both the downtrend counters in the list are likely to be under threat. The uptrend in M&M is likely to be terminated in case of bear domination on Wednesday.

There are plenty of opportunities on the bullish side while bears have a lone opportunity in Infosys. The best among the above is likely to be buying in Satyam Computers. It is in sideways mode. Its buy level is placed closer to its last traded price. Bull pressure on Wednesday is likely to initiate fresh uptrend in this counter.

Cash segment: The composition of the top-10 tradable list remained unchanged. The ranking of the list had few changes. Maruti moved down to seventh position while Tata Engg occupied fourth place. The exit level for NIIT is placed at Rs 236.15.

Bear domination on Wednesday is likely to be a threat to the uptrend in Infosys and Maruti. On the other hand, Reliance Industries is the lone downtrend counter, which is likely to be terminated on Wednesday. Buying opportunities are likely to exist in almost five counters in the list. Maruti and Tata Steel are likely to have opportunities on the buy side. Infosys is the lone opportunity on the bearish side.

The best bet is likely to be the buying in Wipro. Its exit and bullish trigger levels are placed quite near to its closing price. Bull domination on Wednesday has the potential to trigger 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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