The Hindu Business Line : Bulls ablaze

TUESDAY'S trading activity witnessed Bull domination. However, the sentiment reading of the tradable counters remains bearish. Bull domination on Wednesday is likely to change the sentiment reading in its favour. On the contrary, the bearish sentiment is likely to be further strengthened.

Nifty Futures Recommendation: The December month contract opened with a bear gap of around 4 points and further went down by 6 points. However, bears could not capitalise on their initial momentum and gave way to bulls.

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The December month contract moved within a range of around 86 points making an intraday high of 2814.70. It closed with a gain of around 75 points from its previous close.

The short position in the December month contract exited in the morning session.

The buy level is placed quite nearer and the sell level is placed quite far away from its last traded price. The buy level is likely to be triggered during Wednesday's trading.

Stock Futures Recommendation: The composition and the ranking of the top-10 tradable list had minor changes. Maruti went out of the list and ONGC got into the list.

Tata Steel and State Bank interchanged their positions.

The top three tradable counters in this segment were Reliance, State Bank and Tata Motors.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading.

On the other hand, except Satyam all other downtrend counters in the list are likely to be terminated. There are five opportunities on the buy side. A lone selling opportunity is likely to exist in Infosys.

The best for Wednesday's trading is likely to be buying in Tata Steel. This counter is in side ways mode. Bull move on Wednesday is likely to initiate a fresh uptrend in this counter.

Cash Segment: The composition and the ranking of the top-10 tradable list had minor changes. Siemens went out of the list and ONGC got into the list. Satyam and VSNL interchanged their positions.

Both the uptrend counters in the list are likely to be under threat for Wednesday's trading.

On the other hand, all the downtrend counters in the list are likely to be terminated. There are ample opportunities on the buy side and two opportunities on the sell side for Wednesday's trading.

The best is likely to be buying in Infosys. This counter is in side ways mode.

Bull pressure 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.