The Hindu Business Line : Initial gains not held

BULLS prevailed during the initial hours of Wednesday's trading. However, this had very little impact on the tradable counters. The sentiment reading of the tradable counters stands neutral, mildly in favour of the bears. Bull domination on Wednesday is likely to change the sentiment reading to bullish. Otherwise, the prevailing bearish sentiment is likely to be further strengthened.

Nifty Futures Recommendation: During the initial hour of Wednesday's trading, the March contract gained around 11 points. Later on, bears made a strong comeback and wiped out their early losses.

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The March contract moved within a close band of 16 points. It closed with no gain or loss from Tuesday's close.

The sideways trend in the March contract remains intact. Bearish trigger level for the March contract is placed quite closer to the current level. Bear move on Wednesday has the potential to initiate a fresh downtrend in March contract. Bullish trigger level for the March contract is placed quite far away.

Stock Futures Recommendation: The composition of the top 10 active counters underwent a change. ONGC gained entry with the exit of Infosys. The ranking of the list remains the same with no major changes. The top three traded counters in this segment were Tata Steel, Reliance and SBI.

Most of the counters in the list are likely to be under threat. Bears are likely to have opportunity in four counters. Buying opportunities are likely to exist in six counters.

Selling in Satyam is likely to be the best bet for Wednesday's trading. Bearish trigger level for this counter is placed closer to the current level. Bear pressure on Wednesday is likely to initiate a fresh downtrend in Satyam.

Cash Segment: The top 10 tradable counters list underwent a change. Bank of India gained entry with the exit of Infosys. The ranking of the list remains the same with no major changes. The downtrend in Infosys is likely to terminate at Rs 2,241.05.

Bull pressure on Wednesday is likely to terminate the downtrend in Satyam and SBI. On the other hand, the lone uptrend counter, Andhra Bank, is likely to be under threat.

Selling opportunities are likely to exist in three counters.

Buying opportunities are likely to exist in six counters. For Wednesday, the best is likely to be the selling in Reliance. Bear move on Wednesday is likely to trigger the downtrend in Reliance.

(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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