The Hindu Business Line : Bears have their say

Bears dominated Tuesday's trading activity. However, the sentiment reading of the tradable counters remains bullish. Bear domination on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be strengthened further.

Nifty futures

The June-month contract opened with a bear gap of around 53 points. The June-month contract moved within a range of around 66 points. It closed with a loss of around 94 points from Monday's close.

Click here for table

The long position in the June-month contract remains intact. Both 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. ACC moved up to fourth position pushing down BHEL and Hindalco to sixth and seventh positions respectively. The top-3 tradable counters in this segment were Reliance, Reliance Capital and IPCL.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading.

On the other hand, two downtrend counters are likely to be terminated. There are three opportunities on the buy side and ample opportunities on the sell side for Wednesday's trading.

The best is likely to be selling in Bajaj Auto. This counter is in sideways mode. Bear move on Wednesday is likely to trigger the downtrend in this counter.

Cash segment

The composition and ranking of the top-10 tradable had minor changes. Tata Motors moved out of the list and gave way to L&T. Tata Steel and Maruti interchanged their positions.

Except L&T, all other counters in the top-10 tradable list are likely to be terminated during Wednesday's trading.

There are three opportunities on the buy side and two opportunities on the sell side.

The best is likely to be selling in Infosys. This counter is in uptrend. Bear domination 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 National Stock Exchange. There is risk of loss in trading.)

The author is a technical analyst and fund management consultant.