The Hindu Business Line : Bull domination

BULLS dominated Monday's trading activity. Bears were not given any chance to recover. Bull domination during the day neutralised the sentiment reading.

If bull domination persists on Tuesday, the sentiment reading is likely to turn bullish. On the contrary, sentiment reading is likely to remain neutral.

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Nifty Futures Recommendation: The September month contract gapped up by around 15 points and never looked back. Bears were left stranded during the day's trading. It closed with a gain of 87 points over Friday's close.

Bull domination during the day initiated the long position in the September contract. Both the exit & bearish trigger levels are placed quite far away. These levels are unlikely to be triggered on Tuesday.

Stock Futures Recommendation: The composition of the top-10 active counters list remained unchanged. Satyam, IPCL and REL, ONGC interchanged their rankings. The top three traded counters in this segment were Reliance, State Bank and Tata Steel.

There are no downtrend counters in the list. All the uptrend counters in the list are likely to be under threat. Selling opportunities are unlikely to exist for Tuesday's trading. Buying opportunities are likely to exist in seven counters.

The best for Tuesday's trading is likely to be the buying in REL. This counter is in sideways mode. Bull domination on Tuesday is likely to initiate fresh uptrend in this counter.

Cash Segment: The composition of the top-10 tradable list had changes. Flex Industries and Scandent gave way to ITC and Satyam computers. The ranking of the list too had changes.

Rolta and Sterling Biotech interchanged their rankings while ITC and Satyam Computers occupied last two ranks in the list. The downtrend in Flex Industries, Scandent & VSNL are likely to be terminated at 91.05, 224.75 and 368.10 respectively.

All the positions in the list are likely to be under threat for Tuesday's trading. Buying opportunities exist in six counters in the list. There are no selling opportunities for Tuesday's trading.

The best bet is likely to be the buying in Reliance Industries. Bull pressure on Tuesday is likely to trigger the uptrend in this counter.

(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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