The Hindu Business Line : Bull domination

THE sentiment reading of the tradable counters stands mildly bearish. Bull pressure on Wednesday is likely to change the sentiment reading in their favour. Otherwise, the prevailing sentiment is likely to continue with a slight change in its value.

Nifty Futures recommendation: Right from the open of Tuesday's trading, bulls were in total charge of the day's proceedings. Their dominance left the bears stranded. The July contract registered an intra-day high of 1551.65 after making a low of 1510.20. It closed with a substantial gain of 37 points with respect to previous close.

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The long position in the July contract remained intact. The exit level for the long position is now placed out of danger zone. The exit and bearish trigger levels for the July contract are placed far away. These levels are unlikely to be triggered on Wednesday.

Stock Futures recommendation: The composition of the top-10 tradable list remains unchanged. The top three traded counters in this segment were Tata Steel, Reliance and Tata Motors.

Most of the counters in the list are in the sideways mode. Except for the uptrend in Tata Steel, all the other counters in the list are likely to be under threat. Bulls are likely to have ample opportunities for Wednesday's trading. Selling opportunities are likely to exist in four counters. Buying in ONGC is likely to be the best for Wednesday's trading. Buy level for this counter is placed quite closer to its current level. Bull move on Wednesday is likely to trigger the uptrend in ONGC.

Cash segment: The composition and the ranking of the top-10 tradable list in this segment remain unchanged. Tuesday's market action resulted in triggering the uptrend in Tata Steel.

Bull domination on Wednesday is likely to terminate most of the uptrend counters in the list. On the other hand, the uptrend in Bharti Tele is likely to be under threat. Buying opportunities are likely to exist in as much as seven counters. A lone selling opportunity is likely to exist for Maruti. The best bet is likely to be the buying in ONGC. This counter is in the sideways mode. Bullish trigger level for this counter is placed very close to its last traded price. Bull pressure on Wednesday is likely to initiate 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 technical analyst and fund management consultant.)