The Hindu Business Line : Bulls prevail

BULLS were in command of Monday's trading activity. However, they could not gain much from the day's trading. The sentiment reading of the tradable counters remains bullish. Bear domination on Tuesday is likely to reduce the bull count considerably thereby neutralising the sentiment reading.

Otherwise, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The March contract opened five points above its previous close and subsequently lost around 27 points. Later on, bulls made a strong comeback and gained control of the day's proceedings.

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The March contract moved with in a band of 81 points. It closed higher with a gain of 57 points with respect to Friday's close.

Bull domination led to the reversal of the downtrend in the March contract. The short trade exited with a loss of 28 points. The initiated long position is unlikely to be disturbed on Tuesday.

The exit and bearish trigger levels for the March contract are placed quite far away.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remain unchanged. The top three traded counters in the segment were State Bank, Tata Steel and Reliance Industries.

Bear move on Tuesday is likely to terminate the prevailing uptrend counters in the list. On the other hand, the downtrend in CNX-IT and Maruti is likely to be under threat.

Bulls are likely to have opportunity in five counters. A lone selling opportunity is likely to exist in ACC.

Buying in Infosys is likely to be the best bet for Tuesday's trading. Bullish trigger level is placed within a rupee from the last traded value. Bull pressure on Tuesday is likely to trigger the uptrend in Infosys.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had some changes. Infosys and Reliance Industries interchanged their positions while Tata Tele moved to the fourth position.

The downtrend in ING Vysya is likely to be terminated at Rs 182.05.

Bear domination on Tuesday could be a threat to the uptrend in Reliance, SAIL and Tata Steel. On the contrary, the lone downtrend counter - Maruti is likely to be terminated. Buying opportunities are likely to exist in six counters. A lone selling opportunity is likely to exist in Tata Tele.

The best bet is likely to be the buying in Satyam. Buy level for this counter is placed quite closer to the current level. Bull move on Tuesday is likely to initiate a fresh uptrend in Satyam.

(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.

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