The Hindu Business Line : Bulls prevail

BULLS prevailed over Monday's trading activity. The sentiment reading remains bullish. Bear pressure on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the bullish sentiment is likely to be further strengthened.

Nifty futures: The February month contract opened with a bull gap of around 4 points. The February month contract moved with in a range of around 22 points making an intraday high of 3030.90. It closed with a gain of around 7 points from its previous close.

The long position in the February month contract remains intact. The exit and sell levels for the February month contract are placed quite far away from its last traded price.

In the normal course of trading, these levels are unlikely to be triggered during Tuesday's trading.

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Stock futures: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Satyam moved up to sixth position and ONGC moved down to seventh position. The top-3 tradable counters in this segment were Tata Motors, Titan and VSNL.

All the counters in the top-10 tradable list are likely to be terminated during Tuesday's trading. There are three opportunities on the buy side and five opportunities on the sell side.

The best for Tuesday is likely to be selling in Reliance. This counter is in up trend. Bear pressure on Tuesday is likely to reverse the existing trend in this counter.

Cash segment: The composition and the ranking of the top-10 tradable list had minor changes. ONGC went out of the list and gave way to Titan. Titan and HDFC moved up to third and fourth positions respectively. All the counters in the top-10 tradable list are likely to be under threat for Tuesday's trading.

There are two opportunities on the buy side and ample opportunities on the sell side. The best is likely to be selling in Reliance. This counter is in up trend. Bear pressure on Tuesday is likely to reverse the existing 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.