The Hindu Business Line : Bull domination

Bulls dominated 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

The May month contract opened with a bull gap of around 19 points. May contract moved within a range of around 45 points making an all-time high of 3,610. It closed with a gain of around 46 points from its previous close.

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The short position in the May contract exited and entered a fresh long position in the morning session. The long exit and 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 Wednesday's trading.

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 second position and Maruti moved down to fourth position. Bajaj Auto and Ranbaxy interchanged their positions. The top-3 tradable counters in this segment were Reliance, Tata Steel and Satyam.

There are no downtrend counters in the list. On the other hand, all the uptrend counters in the list are likely to be terminated during Wednesday's trading. There are ample opportunities on the sell side. The best is likely to be selling in Satyam. This counter is in uptrend. Bear move on Wednesday is likely to trigger the downtrend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had minor changes. State Bank went out of the list and gave way to ONGC. All the counters in the list had a total revamp. The long exit level for State Bank is placed at 914.10.

All the counters in the top-10 tradable list are likely to be terminated during Wednesday's trading. There is a lone opportunity on the buy side and ample opportunities on the sell side. The best is likely to be selling in Infosys. 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.