The Hindu Business Line : Bulls prevail

BULLS continued to dominate Tuesday's market action. The sentiment reading of the tradable counters remains bullish. Bear domination on Wednesday is likely to turn the sentiment reading in their favour. On the other hand, the bullish sentiment is likely to be strengthened with additional counters.

Nifty futures recommendation: The October month contract gapped up by 3 points and further went up by 36 points. Bears were unable to make any impact on days trading. The October month contract moved within a range of 38 points. It closed higher with a gain of 37 points from Monday's close.

Click here for table

Bull domination on Tuesday initiated the uptrend in the October month contract. The initiated long position is likely to be safe for Wednesday's Trading. The Bearish trigger level is placed quite far away. This level is unlikely to be triggered on Wednesday's Trading.

Stock futures recommendation: The composition and the ranking of the Top-10 tradable list remain unchanged. The top three traded counters in this segment were Satyam Computers, Reliance and Tata Steel. There are no downtrend counters in the list. All the uptrend counters in the list are likely to be under to threat. Bulls are likely to have a lone opportunity in Reliance for Wednesday's trading. Selling opportunities are likely to exist in five counters. The best bet for Wednesday's trading is likely to be selling in ICICI. Bear pressure on Wednesday's trading is likely to reverse the prevailing uptrend in this counter.

Cash segment: The composition of the Top 10 tradable list had no changes. The ranking of the list had total revamp. The exit level for the uptrend in Satyam Computers is placed at 559.80.

Bear domination on Wednesday is likely to terminate all the uptrend counters in the list. The lone downtrend counter- Sterling Biotech is likely to be safe. Buying opportunities are likely to exist in four counters and selling opportunities are likely to exist in three counters for Wednesday's trading. The best bet for Wednesday's trading is likely to be buying in Reliance Industries. Bull move on Wednesday is likely to initiate a fresh 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.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Signs of value buying seen in RPG Life Sciences

Bulls prevail

Bellwether stocks maintain momentum

Pioneer Embroideries gains ahead of ex-bonus

Independent directors issue — Company Affairs Ministry seeks early solution

SAT dismisses CSE brokers' appeal against ban

SEBI debars Pentamedia Graphics, directors for issuing fake shares

Suzlon IPO price fixed at Rs 510

PVR Ltd planning to enter capital market