The Hindu Business Line : Bulls march ahead

Bear domination on Wednesday has the potential to reduce the bull count by a substantial margin thereby neutralising the sentiment reading. Otherwise, the prevailing bullish sentiment is likely to continue with a slight change in its value.

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Nifty Futures Recommendation: The December contract opened two points above its previous close and went further by another 17 points.

During the intra-day session bears managed to pull down the December contract by 10 points.

The December contract moved within a band of 15 points. It closed with a gain of 13 points with respect to previous close.

The long position in the December contract remains undisturbed.

There is unlikely to be any threat to the uptrend in the December contract for Wednesday. The exit and bearish trigger levels for the December contract is still placed far away. These levels are unlikely to be triggered on Wednesday.

Stock Futures Recommendation: Nine out of the ten counters in the list are in the uptrend. However, bear pressure on Wednesday is likely to terminate most of the uptrend counters in the list. On the other hand, the lone downtrend counter-Reliance is likely to be under threat.

For Wednesday, traders are left with limited opportunities. A lone buying opportunity is likely to exist in Reliance. Selling opportunities are likely to exist in ONGC and Satyam.

The best among the above is likely to be the buying in Reliance. This counter is in the downtrend. The exit and bullish trigger levels for this counter is placed quite closer to its current level. Bull move on Wednesday has the potential to trigger these levels.

Cash Segment: Tuesday's market action resulted in triggering the uptrend in the recommended counter-ONGC. All the counters in the list are in the uptrend. Bear move on Wednesday could be a threat to most of the uptrend counters in the list.

Selling opportunities only exist for Wednesday's trading. This is likely to exist in ONGC, State Bank and Tata Steel. The best bet is likely to be the selling in ONGC. Bear domination on Wednesday has the potential to reverse the prevailing uptrend 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.)