The Hindu Business Line : Bulls march ahead

Bear domination on Wednesday has the potential to change the sentiment reading in their favour. 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 month contract opened three points above its previous close and made steady gains during the day's trading.

Bull domination for the second successive trading day left the bears stranded. The December contract moved within a band of 23 points. It closed with a gain of around 25 points.

Tuesday's market action resulted in initiating the uptrend in the December contract. The long position is likely to continue on Wednesday.

The bearish trigger level for the December contract is placed far away and this is unlikely to be triggered on Wednesday.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list.

The ranking of the list had few changes. Tata Steel moved to the third position followed by Maruti and Tata Motors.

None of the counters in the list is in the downtrend. Bear domination on Wednesday could be a threat to most of the prevailing uptrend counters in the list.

Bulls are likely to have opportunity in three counters. Selling opportunities are likely to exist in seven counters.

Buying in Tata Motors is likely to be the best for Wednesday's trading. Bullish trigger level for this counter is placed very close to its current level.

Bull pressure on Wednesday is likely to initiate a fresh uptrend in Tata Motors.

Cash segment: The composition of the top-10 active counters list remains unchanged. The ranking of the list too remains intact. Tuesday's market action had no impact on the recommended counter - Satyam.

Freak quote of Rs 507 in State Bank has been ignored for our analysis. The day's low for State Bank has been considered as Rs 597.

Bear pressure on Wednesday is likely to terminate the prevailing uptrend counters in the list.

On the contrary, the downtrend in Infosys and Reliance is likely to be under threat. Buying opportunities are likely to exist in four counters. Selling opportunities are likely to exist in three counters.

Buying in Tata Motors is likely to be the best bet for Wednesday's trading.

Bull move on Wednesday has the potential to trigger 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.