The Hindu Business Line : Bears prevail

The day's market action resulted in terminating the uptrend in a few tradable counters. However, the sentiment reading of the tradable counters remains bullish with no downtrend counters.

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Bear move on Wednesday is likely to reduce the bull count to a bare minimum thereby resulting in a change in the sentiment reading.

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

Nifty futures recommendation: The May month contract opened with a bull gap of five points and could not accelerate further.

Bears took charge thereafter and made an intra-day low of 1966.70. The May contract closed with a loss of nine points with respect to Monday's close.

Bears were successful in terminating the uptrend in the May contract.

The long trade exited with a profit of around 50 points. Bullish and bearish trigger levels for the May contract are placed quite closer to the current level.

Stock futures recommendation: The composition of the top-10 active counters list had two changes. Canara Bank and Maruti gained entry with the exit of PNB and Union Bank. The ranking of the list had few changes. The uptrend in PNB and Union Bank are placed at 366.95 and 103.65.

For Wednesday, most of the prevailing counters in the list are likely to be under threat. Bears are likely to have opportunity in almost all the counters. Buying opportunities are likely to exist in three counters.

Selling in Reliance is likely to be the best for Wednesday's trading. Bearish trigger level for this counter is placed closer to the last traded value. Bear move on Wednesday is likely to initiate a fresh downtrend in Reliance.

Cash segment: The composition of the top-10 tradable list remains unchanged. The ranking of the list too remains the same with no major changes.

Tuesday's market action had no impact on the recommended counter - SAIL.

Bear move on Wednesday is likely to terminate most of the uptrend counters in the list. Selling opportunities are likely to exist in as much as eight counters. Buying opportunities are likely to exist in two counters. The best bet for Wednesday's trading is likely to be the selling in Reliance. This counter is in the sideways mode.

Bearish trigger level for this counter is placed within Rs 2 from the closing price. Bear pressure 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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