The Hindu Business Line : Bulls prevail

BULLS prevailed over the Monday's trading activity. The sentiment reading of the tradable counters continues to remain bearish. Bull domination on Tuesday is likely to change the sentiment reading to bullish. On the contrary, the prevailing bearish sentiment is likely to continue with slight change in its value.

Nifty futures recommendation: The November contract opened with a bear gap of around five points. However, bears could not sustain and gave way to bulls.

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The intra-day movement in the November contract was around 23 points. It closed higher with a gain of around 11 points.

Initial bear move led to the initiation of downtrend in the November contract. In the normal course of trading, the short position is likely to remain intact. Buying level is placed quite far away. It is unlikely to be triggered on Tuesday's trading.

Stock futures recommendation: There were no new entries and exits to the top 10 tradable list. However, the ranking of the list underwent few changes. Infosys and Tata Motors interchanged their ranking. Maruti occupied seventh place followed by SBI. The top three traded counters in this segment were Tata Steel, Reliance and SBI.

All the uptrend counters in the list are likely to be under threat for Tuesday's trading. On the other hand, bull domination on Tuesday is likely to terminate all the downtrend counters in the list.

Buying opportunities are likely to exist in four counters in the tradable list. A lone selling opportunity is likely to exist for Tuesday's trading. The best bet is likely to be the buying in Tata steel.

Bullish trigger level for this counter is placed quite near to its last traded value. Bull pressure on Tuesday is likely to reverse the prevailing trend in Tata Steel.

Cash segment: The composition of the tradable list remained intact. The ranking of the list had a minor change. Maruti and Tata Motors interchanged their ranking.

Further bull pressure on Tuesday is likely to be a threat to the down trend counters in the list. On the contrary, all the uptrend counters in the list are likely to be terminated.

Bears are likely to have opportunity in SAIL and Wipro. Buying opportunities are likely to exist in four counters. Buying in Tata Steel is likely to be the best for Tuesday's trading. Bull move on Tuesday has the potential to trigger 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.