The Hindu Business Line : Bull domination

Bulls dominated trading activity on Monday. The sentiment reading of the tradable counters turned 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.

Nifty futures

The May month contract opened with a bull gap of around 20 points. May contract moved with in a range of around 30 points. It closed with a gain of around 43 points from its previous close.

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The long position in the May contract remains intact. 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 Tuesday's trading.

Stock futures

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

All the counters in the top 10 tradable list are likely to be terminated during 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 MTNL. Bear move on Tuesday is likely to change the existing trend in this counter.

Cash segment

The composition of the top 10 tradable list had minor changes. Tata Motors went out of the list, giving way to Ranbaxy. The ranking of the list had no changes. The short exit level for Tata Motors is placed at 981.05.

All the uptrend counters in the top 10 tradable list are likely to be under threat in Tuesday's trading. On the other hand, three downtrend counters are likely to be terminated.

There are three opportunities on the buy side and four opportunities on the sell side. The best is likely to be selling in Infosys. This counter is in uptrend. Bear pressure on Tuesday is likely to trigger the downtrend 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.