The Hindu Business Line : Bull domination

Bulls dominated Monday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Tuesday is likely to change the sentiment reading to bearish. On the other hand, prevailing sentiment reading is likely to be further strengthened with additional counters.

Nifty futures

The July month contract opened with a bear gap of around 20 points from Friday's last traded price. It moved within a range of around 100 points making an intra-day high of 3,132. It closed with a gain of around 90 points from its previous close.

Click here for table

The short position in July month contract remains intact. The short exit & long entry levels are placed quite nearer from its last traded price. Bull move on Tuesday is likely to reverse the existing position in the July month contract.

Stock futures

The composition of the top-10 tradable counters had no changes. However, ranking of the list underwent minor changes. Satyam Computers moved up to the third rank from tenth. The top-3 tradable counters in this segment were Tata Steel, Reliance and Sterlite Industries.

All the downtrend counters are likely to be under threat for Tuesday's trading. On the other hand, the lone uptrend counter Bajaj Auto is likely to be terminated. There are ample buying opportunities and one selling opportunity for Tuesday's trading. The best is likely to be buying in Hindalco. This counter is in sideways mode. Bull move on Tuesday is likely to initiate fresh uptrend in this counter.

Cash segment

The composition of the top-10 tradable list had minor changes. SAIL gained entry in the place of Tata Motors. The ranking of the list had minor changes with VSNL and SAIL occupying eighth & ninth position in the top-10 list.

There are no uptrend counters in the list. All the downtrend counters in the list are likely to be under threat for Tuesday's trading. There are ample buying opportunities for Tuesday's trading. The best among the above is likely to be buying in Infosys. This counter is in downtrend. Bull move on Tuesday is likely to reverse the prevailing trend in Infosys.

(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.