The Hindu Business Line : Bulls prevail

Bulls prevailed over Tuesday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear move on Wednesday is likely to change the sentiment reading in their 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 from its previous close. The August month contract moved within a range of around 19 points making an intraday high of 3,439. It closed with a gain of around 24 points from its previous close.

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The long position in the August 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 and ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment were Reliance, Tata Steel and IPCL.

Except Tata Steel all other counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. There are ample selling opportunities for Wednesday's trading. A lone buying opportunity is likely to exist in Bajaj Auto.

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

Cash segment

The composition and the ranking of the top-10 tradable list had minor changes. L&T, SAIL, Satyam and VSNL went out of the list and gave way to Hind Lever, BHEL, State Bank and SRF. The exit levels for L&T, SAIL, Satyam and VSNL are placed at 2418.05, 76.70, 812.60 and 413.95 respectively.

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 down trend counters are likely to be terminated. There are two buying opportunities and ample selling opportunities for Wednesday's trading.

The best is likely to be selling in Hind Lever. This counter is in uptrend. Bear move on Wednesday is likely to trigger the down trend 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.