The Hindu Business Line : Bull domination

The sentiment reading of the tradable counters stands bullish. Bear domination on Tuesday is likely to reduce the bull count by a considerable margin thereby resulting in change in the sentiment reading. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.

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Nifty futures recommendation: The near-month June contract opened with a bull gap of 13 points and went further by another 10 points. Later on, bears managed to recoup their losses. The June contract moved within a band of 20 points registering an intra-day low of 2114.05. It closed with a gain of seven points with respect to Friday's close.

Bull domination during the day led to the reversal of the uptrend in the June contract. The short trade exited with a loss of 23 points. The exit level for the initiated long position is placed within four points from the last traded value.

Bear pressure on Tuesday is likely to terminate the uptrend in the June contract. Bearish trigger level for the June contract is placed quite far away.

Stock futures recommendation: The composition of the top-10 tradable list remains unchanged. The ranking of the list underwent a change. Satyam and Tata Steel interchanged their positions.

Except for the downtrend in Arvind Mills, all the other counters in the list are likely to be under threat.

Buying opportunities are likely to exist in NTPC, State Bank and Tata Motors. A lone selling opportunity is likely to exist in NTPC.

The best among the above is likely to be the selling in NTPC. Bearish trigger level for this counter is placed closer to the last traded price. Bear pressure on Tuesday is likely to initiate a fresh downtrend in NTPC.

Cash segment: There were no new entries or exits to the top-10 active counters list. The ranking of the list had a few changes. SAIL moved to the fourth position and Tata Motors to the ninth position.

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

Buying in SAIL is likely to be the best bet for Tuesday's trading. This counter is in the sideways mode. Buy level for this counter is placed quite closer to the current level. Bull move on Tuesday is likely to trigger the uptrend in SAIL.

(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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