The Hindu Business Line : Bull domination

Bulls dominated Wednesday'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 other hand, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty Futures

The September contract opened with a bull gap of around 14 points from its previous close. September month contract moved with in a range of around 62 points making an intra-day high of 3581. It closed with a gain of around 52 points from its previous close.

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The long position in the September contract exited and entered short. The short position was neutralised during the latter part of the day's trading. The long entry level is placed quite nearer to its last traded price. Bull move on Wednesday is likely to initiate a fresh long position in the September contract.

Stock Futures

The composition and ranking of the top-10 tradable list had minor changes. SBI gave way to ACC, which occupied tenth position in the ranking. The top-3 tradable counters in this segment were Reliance Industries, Tata Steel and SBI.

Most of the counters in the list are in uptrend and are likely to be under threat for Wednesday's trading. On the other hand, the four downtrend counters are likely to be terminated. There are five opportunities on either side for Wednesday's trading.

The best is likely to be buying in Maruti. This counter is in sideways mode. Bull move on Wednesday is likely to trigger the uptrend 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 top-10 tradable list are in uptrend. All the uptrend counters are likely to be under threat for Wednesday's trading.

On the other hand, the downtrend counter ITC is likely to be terminated. There are ample selling opportunities and four buying opportunities for Wednesday's trading. The best is likely to be buying in Maruti. This counter is in sideways mode. Bull move on Wednesday is likely to trigger the uptrend 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.