The Hindu Business Line : Bull domination

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

Nifty futures

The August month contract opened with a bull gap of around 13 points. The August contract moved with in a range of around 90 points making an intra-day low of 3221.10. It closed with a gain of around 50 points from its previous close.

The long position in the August contract remains intact and has locked in a profit of around 61 points. Both the long exit and short entry levels are placed quite far away from its last traded price. In the normal course of trading during Wednesday these levels are unlikely to be triggered.

Stock futures

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. SBI moved up and occupied third position while ONGC moved down to fourth position in the ranking. The top-3 tradable counters in this segment were Reliance, Tata Steel and India Cements.

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All the counters in the list are in the uptrend. Bear domination on Wednesday is likely to terminate all the uptrend counters in the list. There are ample selling opportunities for Wednesday's trading.

The best is likely to be selling in TCS. This counter is in uptrend. Bear move on Wednesday is likely to reverse the trend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. Most of the counters in the list are in uptrend. All the uptrend counters are likely to be under threat during Wednesday's trading. On the other hand the lone downtrend counter L&T is likely to be terminated during Wednesday's trading. There are ample selling opportunities and one buying opportunity for Wednesday's trading.

The best is likely to be selling in Maruti. This counter is in uptrend. Bear move on Wednesday 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.