The Hindu Business Line : Bull domination

BULLS took charge of Monday's trading activity. The sentiment reading of the tradable counters stand strongly bullish with no downtrend counters in the tradable list. Bear domination on Tuesday is likely to change the sentiment reading in its favour. Otherwise, the prevailing bullish sentiment is likely to continue with a slight change in its value.

Nifty futures recommendation: The September month contract opened four points above its previous close and steadily gained through the day's trading. Bears were unable to make any impact during the day. The September contract moved within a close band of 12 points. It closed with a gain of six points over Friday's close.

Bull domination during the day led to the reversal of the downtrend in the September contract. The short trade exited with a loss of 13 points. In the normal course of trading on Tuesday, the initiated long position is likely to continue. The exit and bearish trigger levels for the September contract are placed slightly away from its current level.

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Stock futures recommendation: The composition of the top-10 tradable list underwent a change. M&M gained entry with the exit of Wipro. The ranking of the list had a minor change. The exit level for the uptrend in Wipro is placed at 580.95.

Except for the uptrend in Satyam, all the other counters in the list are likely to be under threat. Buying opportunities are likely to exist in ACC and Tata Motors. Selling opportunities are likely to exist in almost all the counters in the list.

The best bet for Tuesday's trading is likely to be the buying in Tata Motors. Bullish trigger level for this counter is placed within two rupees from its last traded value. Bull move on Tuesday is likely to trigger the uptrend in ACC.

Cash segment: The top-10 tradable list in this segment underwent a change. M&M gained entry with the exit of Wipro. Maruti and Tata Motors interchanged their positions.

Bear domination on Tuesday is likely to terminate most of the uptrend counters in the tradable list. Bulls are likely to have opportunity in SAIL and Tata Motors. Selling opportunities are likely to exist in as much as seven counters.

Buying in Tata Motors is likely to be the best for Tuesday's trading. Buy level for this counter is placed very close to its current level. Bull pressure on Tuesday is likely to initiate the uptrend in Tata Motors.

(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.