The Hindu Business Line : Bull domination

Monday's trading activity witnessed bull domination. The sentiment reading of the tradable counters changed to bullish. Bear pressure on Tuesday is likely to neutralise the sentiment reading. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures: The April month contract opened with a bull gap of around 28 points. April contract moved with in a range of around 79 points, making an intra-day high of 3,435. It closed with a gain of around 83 points from its previous close.

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The short position in the April month contract exited and entered a fresh long position in the morning session. The long exit and the short entry levels 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.

Stock futures: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Ranbaxy and Jet Airways moved down to sixth and eighth positions respectively. Maruti and Infosys moved up to fourth and fifth positions respectively. The short exit level for State Bank is still placed at 963.55.

All the existing positions in the counters are likely to be terminated during Tuesday's trading. There are two opportunities on the buy side and three opportunities on the sell side. The best is likely to be buying in BHEL. Bull pressure on Tuesday is likely to trigger the uptrend in this counter.

Cash segment: The composition and the ranking of the top-10 tradable list had minor changes. i-flex went out of the list and State Bank got into the list. Hind Lever and Tata Steel interchanged their positions.

All the counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. There are three opportunities on the either side of trading. The best is likely to be buying in Hind Lever. Bull 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.