The Hindu Business Line : Sideways movement

THE sentiment reading of the tradable counters stands mildly bearish. Bull domination on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

Nifty futures recommendation: June contract opened with a bull gap of eight points and moved further by another 34 points. Thereafter, bears took charge of the day's proceedings and wiped out most of their losses. June contract moved within a band of 37 points. It closed with a gain of 12 points with respect to Monday's close.

Initial bull move led to the termination of the downtrend in the June contract.

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The short position in the June contract exited with a profit of 50 points. Bull domination on Wednesday has the potential to initiate the uptrend in the June contract. Bearish trigger level for the June contract is placed slightly far away.

Stock futures recommendation: The composition of the top-10 tradable list in this segment remains unchanged. The ranking of the list too remains the same with no major changes. For those still holding short position in ONGC may do so with the stop loss placed at 642.05.

None of the counters in the tradable list are in the uptrend. Except for the downtrend in ACC, all the other counters in the list are likely to be safe.

Bears are unlikely to have any opportunity for Wednesday's trading. Buying opportunities are likely to exist in five counters. The best bet is likely to be the buying in Reliance. Bullish trigger level for this counter is placed quite closer to its current level. Bull move on Wednesday is likely to initiate a fresh uptrend in Reliance.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a change. Maruti moved to the top slot followed by Reliance. Tuesday's market action had no impact on the recommended counter - Satyam.

The prevailing counters in the tradable list are likely to be safe. For Wednesday, traders are unlikely to have any selling opportunities.

Bulls are likely to have opportunity in as much as five counters. Buying in Infosys is likely to be the best for Wednesday's trading. This counter is in the sideways mode. Its buy level is placed very close to its last traded price.

Bull pressure on Wednesday is likely to trigger the uptrend in Infosys.

(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 technical analyst and fund management consultant.