The Hindu Business Line : Bulls prevail

Bulls prevailed over Tuesday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Wednesday is likely to change the sentiment reading in its favour. On the contrary, bullish sentiment is likely to be further strengthened with additional counters.

Nifty Futures

The July contract opened with a bull gap of around 42 points from Monday's close. The July contract moved with in a range of around 41 points making an intraday high of 3,049.50. It closed with a gain of around 41 points from its previous close.

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The short position in the July contract was exited and entered long. The long exit and short entry levels are placed quite far away from Tuesday's last traded price. In the normal course of trading during Wednesday these levels are unlikely to be triggered.

Stock Futures

The composition and ranking of the top-10 tradable list had minor changes. MTNL moved out giving way to REL. REL occupied tenth position in the top-10 tradable list. The exit level for MTNL is placed at 141.75. The top-3 tradable counters in this segment were Tata steel, Reliance and Satyam.

Most of the counters in the list are in the uptrend. All the uptrend counters in the tradable list are likely to be under threat during Wednesday's trading. There are three downtrend counters in the tradable list. The downtrend counter Bajaj Auto is likely to be terminated during Wednesday's trading.

There are three selling opportunities and one buying opportunity for Wednesday's trading. The best is likely to be selling in Nalco. This counter is in uptrend. Bear move on Wednesday is likely to reverse the prevailing trend in this counter.

Cash Segment

The composition and ranking of the top-10 tradable list had minor changes. Reliance Capital moved out giving way to L&T. SAIL moved up in the ranking while L&T occupied 10th position in the top-10 tradable list.

All the counters in the list except Maruti are in uptrend. All the counters in the list are likely to be under threat for Wednesday's trading.

There are ample selling opportunities and one buying opportunity exists for Wednesday's trading. The best is likely to be selling in Infosys. This counter is in uptrend. Bear move on Wednesday is likely to initiate a fresh 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.