The Hindu Business Line : Bulls gain

THE sentiment reading of the tradable counters stands neutral. Bull domination on Wednesday is likely to turn the sentiment reading bullish. Otherwise, it is likely to turn bearish.

Nifty futures recommendation: Bulls made a strong come back on Tuesday. Bears were unable to have any say in the day's proceedings. The May month contract opened with a bull gap of around four points. The May contract moved within a band of 32 points. It closed with a gain of 31 points from the previous close.

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The downtrend in May contract remained undisturbed in spite of the bull domination during the day. Both the exit and bullish levels are still placed quite far away. It is unlikely to be triggered during Wednesday's trading.

Stock futures recommendation: The composition of the top-10 tradable list had a change. The ranking of the list too had minor changes. Maruti gained entry in place of Tata power. Reliance moved to fourth position followed by Infosys and Satyam computers.

The top three traded counters in the list are Tata steel, Tata Motors and Maruti. Trading activity in Oriental bank witnessed 3085 trades on Tuesday.

There is unlikely to be any threat to the downtrend counters in the tradable list. Bear domination on Wednesday is likely to be a threat for the uptrend in Infosys. Buying opportunities are likely to exist in as much as five counters in the tradable list. A lone selling opportunity is likely to exist in Infosys.

The best among the above is likely to be the buying in State Bank. This counter is in sideways. Bull move on Wednesday is likely to initiate fresh uptrend in State Bank.

Cash segment: The composition and the ranking of the top-10 tradable list remained unchanged. Tuesday's market action resulted in triggering the uptrend in the recommended counter — Infosys.

The uptrend in Infosys is likely to be under threat for Wednesday. Except for the downtrend in Tata Steel, both the downtrend counters in the list are likely to be under threat for Wednesday.

Bull domination during the day has provided with the ample opportunities for buying on Wednesday. A lone selling opportunity is likely to exist in Infosys.

The best among them is likely to be buying in State Bank. Bull pressure on Wednesday is likely to trigger the 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.