The Hindu Business Line : Bulls prevail

The sentiment reading of the tradable counters stands strongly bullish with no downtrend counters. Bear domination on Wednesday has the potential to change the sentiment reading in their favour.

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Nifty futures recommendation: During the initial hour of Tuesday's trading, the near month May contract lost around seven points. Later on, the bulls took charge of the day's proceedings and wiped out their early losses.

The May month contract moved within a band of 25 points, registering a high of 2028.90. It closed with a gain of 12 points over Monday's close.

Monday's market action had no impact on the recommended level. The exit level for the long position is now placed out of the danger zone. Bearish trigger level for the May contract is placed slightly away from the last traded value.

In the normal course of trading on Wednesday, the uptrend is unlikely to be disturbed.

Stock futures recommendation: There were no new entries or exits to the top-10 active counters list. The ranking of the list had some changes. Satyam moved to the fourth position followed by Infosys and Tata Motors.

Except for Tata Steel, all the counters in the list are in the uptrend. Bear pressure on Wednesday could be a threat to most of the prevailing uptrend counters . Selling opportunities are likely to exist in five counters. A lone buying opportunity is likely to exist in Tata Steel.

The best is likely to be the buying in Tata Steel. Bullish trigger level for this counter is placed quite closer to the current level. Bull move on Wednesday is likely to initiate a fresh uptrend in Tata Steel.

Cash segment: The composition as well as the ranking of the top-10 tradable counters remains intact. Monday's market action resulted in triggering the uptrend in the recommended counter-Reliance. The uptrend in Wipro is likely to terminate at Rs 666.15.

For Wednesday, most of the uptrend counters are likely to be terminated. Bulls are likely to have opportunity in Oriental Bank and Tata Steel. Selling opportunities are likely to exist in seven counters.

Buying in Tata Steel is likely to be the best bet for Wednesday's trading. The buy level for this counter is placed very close to the last traded price. Bull pressure on Wednesday is likely to trigger the uptrend in Tata Steel.

(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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