The Hindu Business Line : Bulls retain pressure

BULLS maintained their pressure over Tuesday's trading activity. The sentiment reading of the tradable counters stands neutral. Bull move on Wednesday is likely to change the sentiment reading to bullish. On the contrary, it is likely to turn the sentiment reading to bearish.

Nifty futures recommendation: The near month June contract opened around the previous close and lost 10 points in the initial hour of the day's trading. Thereafter, bulls took charge of the day's proceedings and wiped out their early losses.

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The June contract moved within a band of 23 points. It closed with a gain of around 10 points with respect to Monday's close.

Bulls were successful to the extent of terminating the downtrend in the June contract. The short trade exited with a loss of 11 points. Bullish trigger level for the June contract is placed within three points from the last traded value.

Bull pressure on Wednesday is likely to initiate a fresh uptrend in the June contract.

Stock futures recommendation: The composition of the top-10 active counters list had a few changes. Polaris and ONGC gained entry with the exit of ACC and NTPC.

The exit level for the short position in NTPC is placed at Rs 86.30.

For Wednesday, most of the counters in the list are likely to be under threat. Bulls are likely to have opportunity in six counters. Selling opportunities are likely to exist in four counters.

Buying in Infosys is likely to be the best for Wednesday's trading. Bullish trigger level for this counter is placed closer to the current level. Bull move on Wednesday is likely to trigger the uptrend in Infosys.

Cash segment: The composition of the top-10 tradable list underwent a change. Ranbaxy gained entry with the exit of Maruti.

The ranking of the list had a few changes. Reliance moved to the top slot and Hindustan Lever moved to the eighth position. The downtrend in Maruti is likely to terminate at Rs 447.80.

Bear move on Wednesday is likely to terminate the uptrend in Hindustan Lever, Reliance and Satyam. On the contrary, the downtrend in SAIL, Tata Motors and Tata Steel is likely to be under threat.

Buying opportunities are likely to exist in seven counters. Selling opportunities are likely to exist in five counters.

For Wednesday, the best bet is likely to be the buying in State Bank. This counter is in the sideways mode. Buy level for this counter is placed close to the current level. Bull pressure on Wednesday is likely to initiate the uptrend in State Bank.

(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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