The Hindu Business Line : Bull onslaught

BULLS were in total command of Monday's trading activity. The sentiment reading of the tradable counters stands strongly bullish with no downtrend counters. Bear domination on Tuesday is likely to reduce the bull count by a considerable margin thereby resulting change in the sentiment reading.

Nifty futures recommendation: The July month contract opened with a bull gap of four points and thereafter made steady gains through the day's trading. Bears were unable to make any impact on the day's trading. The July contract moved within a band of 25 points registering an intra-day low of 2002.00. It closed higher with a gain of around 20 points over Friday's close.

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The long position in the July is now locked-up with a nominal profit of nine points. The exit and bearish trigger levels for the July contract are still placed far away. In the normal course of trading on Tuesday, these levels are unlikely to be triggered.

Stock futures recommendation: The top-10 tradable list underwent a change. ICICI Bank gained with the exit of Arvind Mill. The ranking of the list had some changes. Polaris moved to the third position and ONGC moved to the seventh position. The exit level for the uptrend in Arvind Mill is placed at 128.45.

For Tuesday, most of the uptrend counters in the list are likely to be under threat. Bulls are likely to have opportunity in two counters. Selling opportunities are likely to exist in six counters. Buying in Reliance is likely to be the best bet for Tuesday's trading. Buy level for this counter is placed quite closer to the current level. Bull move on Tuesday is likely to initiate a fresh uptrend in Reliance.

Cash segment: TCS gained entry to the top-10 active counters list with the exit of Tata Motors. The ranking of the list had a total revamp. The downtrend in SAIL and Tata Motors are likely to terminate at 50.85 and 431.05 respectively. The exit level for the uptrend in Hind Lever is placed at 163.45.

Bear move on Tuesday is likely to terminate most of the uptrend counters in the list. Buying opportunities are likely to exist in two counters. Selling opportunities are likely to exist in five counters. For Tuesday, the best is likely to be the buying in TCS. Bullish trigger level for this counter is placed closer to the last traded price. Bull pressure on Tuesday is likely to trigger the uptrend in TCS.

(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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