The Hindu Business Line : Bull domination

BULLS were in total command of Tuesday's trading activity. The sentiment reading of the tradable counters stands bullish. Bear domination on Wednesday is likely to reduce the bull count by a substantial margin thereby resulting change in the sentiment reading. On the other hand, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The near month August contract opened around the previous close and made steady gains over the day's trading. Bears were unable to make any impact during the day's trading activity. The August month contract moved within a band of 43 points registering a low of 2310.10. It closed with a gain of 38 points over Monday's close.

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Bull domination during the day led to the initiation of the uptrend in the August contract. In the normal course of trading on Wednesday, the initiated long position is unlikely to be disturbed. Bearish trigger level for the August contract is still placed far away.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable counters list remains unchanged. Reliance, Tata Steel and VSNL were the top three traded counters in this segment.

None of the counters in the list are in the downtrend. Bear pressure on Wednesday is likely to terminate most of the uptrend counters in the list. For Wednesday, opportunities are restricted to the long side. Buying in Satyam is likely to be the best bet for Wednesday's trading. Buy level for this counter is placed quite closer to the current level. Bull move on Wednesday has the potential to initiate a fresh uptrend in Satyam.

Cash segment: There were no new entries or exits to the top-10 active counters list. The ranking of the list had few changes. Satyam moved to the fourth position and Zee Tele to the eighth position.

Except for the uptrend in State Bank and the downtrend in Tata Tele, all the other counters in the list are likely to be under threat. Selling opportunities are unlikely to exist for Wednesday's trading. Buying opportunities are likely to exist in Satyam and Tata Steel. Between the two, the best bet is likely to be Satyam. This counter is in the sideways mode. Bullish trigger level for this counter is placed within two rupees from the last traded price. Bull pressure on Wednesday is likely to trigger the uptrend in Satyam.

(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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