The Hindu Business Line : Bulls prevail

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

Nifty futures recommendation: Initially the September month contract lost around 11 points. Later on, bulls made a strong comeback and wiped out their early losses. The September contract moved within a band of 20 points. It closed with a gain of four points above its previous close.

The long position in the September contract remains intact. The exit and bearish trigger levels for the September contract has been moved closer. Bear domination has the potential to reverse the prevailing uptrend in the September contract.

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Stock futures recommendation: The most active top-10 counters list in this segment underwent a change. Wipro gained entry with the exit of M&M. The ranking of the list had few changes. Maruti moved to the fourth position and ONGC to the seventh position. The exit level for the uptrend in M&M is placed at 421.45.

None of the counters in the list are in the downtrend. Bear domination on Wednesday is likely to terminate most of the uptrend counters in the list. Buying opportunities are likely to exist in five counters. Selling opportunities are likely to exist in as much as nine counters. Buying in Tata Steel is likely to be the best bet for Wednesday's trading. Buy level for this counter is placed very close to its closing price. Bull pressure on Wednesday is likely to trigger the uptrend in Tata Steel.

Cash segment: The composition as well as the ranking of the top-10 tradable list remains unchanged. Tuesday's market action resulted in triggering the downtrend in Satyam.

Except for the uptrend in SAIL, all the other counters in the list are likely to be under threat. Bears are likely to have opportunity in seven counters. Buying opportunities are likely to exist in three counters. Selling in ONGC is likely to be the best for Wednesday's trading. Bearish trigger level for this counter is placed within two rupees from its current level. Bear move on Wednesday has the potential to initiate a fresh downtrend in ONGC.

(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.