The Hindu Business Line : Bull run arrested

THE sentiment reading of the tradable counters remains mildly bullish. Bear domination on Tuesday is likely to change the sentiment reading in its favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The November contract opened around its previous close. It moved with in a range of 28 points making an intra-day low of 2599.15. It closed with a loss of 24 points from its previous close.

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The long position in the November contract remains intact. The exit and sell levels for the November month contract are placed quite far away. In the normal course of trading on Tuesday these levels are unlikely to be triggered.

Stock futures recommendation: The composition of the top-10 tradable list had minor changes. However, the ranking of the list had no changes. Reliance went out of the list and gave way for Arvind Mill.

The exit levels for Maruti and Reliance are placed at Rs 591.35 and Rs 446.95 respectively. The top three tradable counters in this segment were Reliance, Reliance Capital and State Bank.

All the uptrend counters in the list are likely to be under threat for Tuesday's trading. On the other hand three downtrend counters are likely to be terminated. A lone buying opportunity is likely to exist in Infosys. Selling opportunities are likely to exist in four counters in the list.

The best for the Tuesday is likely to be selling in Tata Steel. This counter is side ways. Bear pressure on Tuesday is likely to initiate a fresh down trend in this counter.

Cash segment: The composition of list had no changes. The ranking of the top-10 tradable list had minor changes. Reliance Capital and Reliance interchanged their positions. Indiabulls moved up to seventh position and Infosys moved down to eighth position.

All the uptrend counters in the list are likely to be terminated during Tuesday's trading. A lone down trend counter Infosys is likely to be under threat.

Buying opportunities are likely to exist in two counters in the list. There are ample selling opportunities for Tuesday's trading.

The best for Tuesday's trading is likely to be selling in Satyam. This counter is in side ways. Bear pressure on Tuesday is likely to initiate a fresh down trend 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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