The Hindu Business Line : Bulls prevail

BULLS prevailed over Tuesday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear pressure on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The February month contract opened with a bull gap of around 7 points. Bulls left no opportunity for bears to recover through out the trading day. The February month contract moved with in a range of around 34 points making an intraday high of 3045.90. It closed with a gain of around 33 points from its previous close.

Bull move during the day reversed the short position in the February month contract. 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 Wednesday's trading.

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Stock futures recommendation: The composition and the ranking of the top-10 tradable list had major changes. Tata Steel, State Bank of India, ICICI Bank, Reliance and Ranbaxy moved out of the list and gave way to IPCL, Maruti, Hindlever, Hindalco and Union Bank. Tata Motors moved down to fourth position and Infosys moved up to seventh position. The top-3 tradable counters in this segment were Tata Steel, Satyam and Reliance.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. There are no down trend counters in the list. Selling opportunities are likely to exist in all the counters in the list. The best for Wednesday is likely to be selling in IPCL. This counter is on uptrend. Bear pressure on Wednesday is likely to reverse the existing trend in this counter.

Cash segment: The composition of the top-10 tradable list had no changes. However the ranking of the list had minor changes. Infosys moved down to ninth position and Hindlever moved up to sixth position.

There are no downtrend counters in the list. All the uptrend counters in the top-10 tradable list are under threat during Wednesday's trading. Except L&T all the other counters in the list are likely to have selling opportunities. The best is likely to be selling in Titan. This counter is in up trend. Bear pressure on Wednesday 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.