The Hindu Business Line : Bull onslaught

BULLS were in total command of Tuesday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear move on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to continue with added strength.

Nifty futures recommendation: During the open, the near month June contract lost around seven points. Later on bulls made an instant recovery and gained control of the proceedings. The June contract moved within a band of 41 points. It closed higher with a gain of 30 points over the previous close.

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Initial down move terminated the uptrend in the June contract. The long trade exited with a loss of one points. Re-entry level for June contract is placed closer to the current level. Bull pressure on Wednesday is likely to reinstate the uptrend in the June contract. Bearish trigger level for the June contract is still placed far away.

Stock futures recommendation: There were no new entries or exits to the top-10 active counters list. The top three traded counters in this segment were Reliance, Reliance Capital and Tata Steel.

Except for the downtrend in Arvind Mills, all the other counters in the list are likely to be under threat. Bulls are likely to have opportunity in three counters. Selling opportunities are likely to exist in two counters. Buying in NTPC is likely to be the best bet for Wednesday's trading. This counter is in the sideways mode. Buy level for this counter is placed within a rupee from the last traded value. Bull pressure on Wednesday is likely to trigger the uptrend in NTPC.

Cash segment: The composition as well as the ranking of the top-10 tradable list remains unchanged. Bulls were successful in triggering the uptrend in the recommended counter-SAIL.

Bear pressure on Wednesday is likely to terminate most of the uptrend counters in the list. On the other hand, the downtrend in State Bank and Tata Motors is likely to be under threat. Buying opportunities are likely to exist in State Bank and Tata Motors. A lone selling opportunity is likely to exist in SAIL. The best among the above is likely to be the buying in Tata Motors. The exit and bullish trigger levels for this counter are placed quite closer to the current level. Bull move on Wednesday is likely to reverse the prevailing downtrend in Tata Motors.

(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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