The Hindu Business Line : Bulls on fire

BULLS alighted over Tuesday's trading activity. The emotional reading of the tradable counters remains bullish. Bear control on Wednesday is likely to alter the outlook in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The January month contract opened with a bull breach of around five points. The January month contract moved within a range of around 56 points recording an all time high of 2,872. It closed with a gain of around 48 points from its previous close.

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The Long position in the January month contract remains unbroken. The exit and sell levels are placed quite far away from its last traded price with a profit locking of around three points. In the normal course of Wednesday's trading, these levels are unlikely to be triggered.

Stock futures recommendation: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. ICICI moved up to third position and State Bank moved down to fifth position. The top three tradable counters in this segment were Reliance, Reliance capital and State Bank.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. On the other hand, there are no down trend counters in the list. There are two opportunities on the buy side and ample opportunities on sell side. The best for Wednesday's trading is likely to be buying in Infosys. This counter is in side ways mode. Bull budge on Wednesday is likely to initiate a fresh up trend in this counter.

Cash segment: The Composition and the ranking of the top-10 tradable list had no changes. There are no down trend counters in the list. All the uptrend counters in the top-10 tradable list are likely to be terminated during Wednesday's trading. There are three opportunities on the buy side and ample opportunities on sell side. The best is likely to be buying in ICICI. This counter is in side ways mode. Bull force on Wednesday is likely to initiate a fresh up 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.