The Hindu Business Line : Bulls prevail

Bulls prevailed over the Tuesday's trading activity. However, sentiment reading of the tradable counters continues to remain bearish. Further bull pressure on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

Nifty Futures Recommendation

The May month contract opened with a bull gap of around 40 points and thereafter fell by around 100 points. However, bears could not sustain their initial momentum & gave to bulls during the later part of the day's trading. May month contract moved with in the range of around 240 points. It closed with a gain of around 163 points from its previous close.

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The short position in the May contract remained undisturbed. The short exit & long entry levels are placed 100 points away from last traded price. Bull domination on Wednesday is likely to trigger these levels.

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 Hindalco.

In case of bear domination during Wednesday, all the downtrend counters in the list are likely to be under threat. On the other hand, uptrend counters are likely to be terminated. There are five buying opportunities for Wednesday's trading. Selling levels are placed quite far away. Nearest selling levels are placed for Satyam & ACC. The best opportunity for Wednesday's trading is likely to be buying in Infosys. Bull pressure on Wednesday is likely to reverse the prevailing trend in this counter.

Cash Segment

The Composition and the ranking of the top-10 tradable list had changes. Infosys gained entry with the exit of Gujarat Ambuja. The short exit levels for Hind Lever, SAIL & Guj Amb Cement are placed at 239.75, 79.25 and 97.35.

Bear pressure on Wednesday is likely to terminate both the uptrend counters in the list. On the other hand, downtrend in Reliance Industries, Tata Steel & VSNL are likely to be under threat. Buying opportunities are likely to exist in five counters. Selling levels are placed quite far and nearest levels are likely to be for Satyam & Tata Motors. The best bet for Wednesday's trading is likely to be buying in Satyam. Bull move on Wednesday is likely to initiate fresh uptrend 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.