The Hindu Business Line : Bull domination

Bulls dominated 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 their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The November month contract opened with a bull gap of around 14 points from its previous close. The November contract moved within a range of around 65 points making an intra-day high of 3933.80. It closed with a gain of around 68 points from its previous close.

The short position in the November contract exited and entered long. The long exit and short entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during trading on Wednesday.

STOCK FUTURES

The composition of the top-10 tradable counters had no changes. However, the ranking had minor changes. ICICI and Tata Steel interchanged their positions. The top-3 tradable counters in this segment were IVRCL, Tata Steel and Reliance Industries.

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Most of the counters in the top-10 tradable list are in uptrend. Except Century Textiles and Tata Steel, the other uptrend counters are likely to be under threat for Wednesday's trading. On the contrary, the lone downtrend counter ACC is likely to be terminated. There are ample selling opportunities and two buying opportunities for Wednesday's trading. The best bet is likely to be buying in ONGC. This counter is in sideways mode. Bull move on Wednesday has a potential to trigger the long entry level in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had no changes.

There are six uptrend and three downtrend counters in the top-10 tradable list. Except Tata Steel, the other uptrend counters in the list are likely to be under threat for Wednesday's trading.

On the other hand, the entire downtrend counters are likely to be terminated. There are four opportunities on the buy side and six opportunities on the sell side for Wednesday's trading. The best is likely to be buying in ICICI. This counter is in downtrend. Bull move on Wednesday is likely to reverse the existing 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.