The Hindu Business Line : Sideways movement

THE sentiment reading of the tradable counters remains bearish. Bull domination on Wednesday is likely to neutralise the prevailing sentiment reading. Otherwise, the prevailing sentiment is likely to be further strengthened.

Nifty futures recommendation: The near month April contract opened with a bull gap of four points and further gained eight points. Later on, bears took over and wiped out their early losses. The April contract moved within a band of 22 points and closed around its previous close.

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The short position in the April contract remains intact. The exit level for the short position is now placed out of the danger zone. Bull domination on Wednesday is likely to terminate the downtrend. Bullish trigger level for the April contract remains unchanged.

Stock futures recommendation: The composition of the top-10 tradable list in this segment remains unchanged. The ranking of the list had a minor change. The top three traded counters in this segment were Tata Steel, State Bank and Satyam.

Bull domination on Wednesday could be a threat to the prevailing downtrend counters. On the other hand, the uptrend counters in the list are likely to be terminated. Selling opportunities are likely to exist in five counters. A lone buying opportunity is likely to exist in GAIL. Selling in Infosys is likely to be the best bet for Wednesday's trading. This counter is in the uptrend. The exit and bearish trigger levels for this counter is placed closer to its current level. Bear move on Wednesday is likely to trigger these levels.

Cash segment: There were no new entries or exits of the top-10 tradable list. The ranking of the list too remains the same with no major changes. Tuesday's market action resulted in triggering the uptrend in Infosys.

Bull domination on Wednesday is likely to terminate most of the downtrend counters in the list. On the contrary, the uptrend in Infosys and Tata Steel are likely to be under threat. Bears are likely to have opportunity in Infosys and Tata Steel. Buying opportunities are likely to exist in four counters. Selling in Infosys is likely to be the best for Wednesday's trading. This counter is in the uptrend. Bear pressure on Wednesday is likely to reverse the prevailing trend 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.