The Hindu Business Line : Bulls prevail

Bulls prevailed over Monday's trading activity. However, the sentiment reading of the tradable counters turned to bearish. Bull move on Tuesday is likely to change the sentiment reading to bullish. On the other hand, the bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The November month contract opened with a bear gap around 18 points from its previous close. The November contract moved with in a range of around 57 points making an intra day high of 3781.25. It closed with a gain of around 29 points from its previous close.

The long position in the November contract remains intact. The long exit and short entry levels are placed quite far away from its last traded price. In the normal course of trading during Tuesday these levels are unlikely to be triggered.

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 Industries, Tata Motors and SRF.

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Most of the counters in the top-10 tradable list are in downtrend. Except Tata Motors, all the counters are likely to be under threat for Tuesday's trading. There are ample buying opportunities and four selling opportunities for Tuesday's trading. The best is likely to be selling in ACC. This counter is in up trend. Bear move on Tuesday is likely to change the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable had minor changes. However, ranking of the top-10 tradable list had no changes. Reliance Capital and HDFC went out from the top-10 tradable list and L&T and Satyam fill it. All the counters in the top-10 tradable list are likely to be under threat for Tuesday's trading except Maruti and SBIN. There are seven selling opportunities and five buying opportunities for Tuesday's trading. The best is likely to be buying in L&T. This counter is in side ways. Bull move on Tuesday is likely to initiate a fresh up 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.