The Hindu Business Line : Range-bound movement

Monday's trading activity witnessed a range bound movement. The sentiment reading of the tradable counters remains bullish. Bear pressure on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures recommendation

The April month contract opened with a bear gap of around 28 points. The April contract moved within a range of 44 points, making an intra-day low of 3540.10. It closed with a loss of around 34 points from its previous close.

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The short position in the April month contract remains intact. The short exit and buy 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 recommendation

The composition and the ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Reliance, Tata Steel and Satyam.

Except Satyam, all other 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 is likely to be selling in BHEL. This counter is in uptrend. Bear pressure on Tuesday is likely to trigger the downtrend in this counter.

Cash Segment

The composition and the ranking of the top-10 tradable list had no changes. All the uptrend counters in the top 10 tradable list are likely to be under threat for Tuesday's trading. Two downtrend counters are likely to be terminated. There are two opportunities on the bull side and five opportunities on the bear side. The best is likely to be selling in Hindlever. This counter is in uptrend. 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.