The Hindu Business Line : Bulls prevail

THE sentiment reading of the tradable counters stands bullish. Bear domination on Tuesday is likely to neutralise the sentiment reading. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The June contract opened around its previous close, and, thereafter, bulls took charge of the day's proceedings. The June contract moved within a band of 32 points. It closed with a gain of around 15 points with respect to Friday's close.

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Bull domination during the day terminated the downtrend in the June contract. The short trade exited with a loss of 34 points. Bullish trigger level for the June contract has been moved closer to its current level. Bull domination on Tuesday has the potential to initiate the uptrend in the June contract.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remains unchanged. Bear domination on Tuesday could be a threat to the prevailing uptrend counters in the list. The lone downtrend counter-Tata Power is likely to be safe.

Buying opportunities are likely to exist in CNX IT, HPCL, Reliance and Satyam. A lone selling opportunity is likely to exist in CNX IT. The best bet is likely to be Reliance. This counter is in the sideways mode. Bullish trigger level for Reliance is placed closer to its last traded price. Bull move on Tuesday is likely to trigger the uptrend in this counter.

Cash segment: There were no new entries or exist to the top-10 tradable list. The ranking of the list too remains unchanged. Monday's market action resulted in triggering the uptrend in the recommended counter-Tata Steel.

None of the counters in the list are in the downtrend. Bear pressure on Tuesday is likely to terminate the uptrend in Gail, ONGC, State Bank and Tata Steel. Bulls are likely to have opportunity in five counters.

On the other hand, a lone selling opportunity is likely to exist in Infosys. Buying in Satyam is likely to be the best bet for Tuesday's trading. Buy level for this counter is placed close to its current level. Bull pressure on Tuesday is likely to initiate a fresh uptrend in Satyam.

(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.