The Hindu Business Line : Bull onslaught

BULLS maintained their supremacy over Monday's trading activity. All the counters in the tradable list are in uptrend. Bear domination on Tuesday is likely to reduce the bull count to a bare minimum, thereby, neutralising the sentiment reading. Otherwise, the prevailing bullish sentiment is likely to continue with a slight change in its value.

Nifty futures recommendation: The near month October contract opened with a bull gap of 7 points and made steady gains during the day's trading. Bears were unable to make any impact during the day. The October contract closed with a gain of 29 points with respect to Friday's close.

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Bull domination during the day led to the initiation of the uptrend in the October contract. In the normal course of trading on Tuesday, the initiated long position is unlikely to be disturbed. Bearish trigger level for the October contract is placed far away.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list remains the same with no major changes. Maruti, Tata Steel and Reliance were the top three traded counters in this segment.

Bear domination on Tuesday is likely to terminate most of the uptrend counters in the list. Traders are left with a lone opportunity for Tuesday's trading. This is likely to exist on the short side of Ranbaxy. The exit and bearish trigger levels for this counter are placed quite closer to its last traded value. Bear move on Tuesday has the potential to reverse the prevailing uptrend in Ranbaxy.

Cash segment: The composition of the top-10 active counters list remains unchanged. The ranking of the list had few changes. Tata Motors moved to the fifth position and ONGC to the eighth position.

Bull domination on Monday led to the initiation of the uptrend in all the counters in the list. However, bear move on Tuesday could be a threat to most of the uptrend counters. For Tuesday, a lone opportunity is likely to exist on the short side of Infosys. The exit and sell trigger levels for this counter are placed closer to its closing price. Bear pressure on Tuesday is likely to reverse the prevailing 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.