The Hindu Business Line : Bulls prevail

Bulls prevailed over Tuesday's trading activity. The sentiment reading of the tradable counters remained 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 strengthened.

NIFTY FUTURES

The December month contract opened with a bull gap of around 12 points and further went up by another 10 points. The December month contract moved within a range of around 20 points making an intraday high of 4028.00. The December month contract closed with a gain of around 16 points from its previous close.

The long position in the December month contract is locked up with a decent profit of around 40 points. The long exit and short entry levels are placed quite far away. In the normal course of trading during Wednesday these levels are unlikely to be triggered.

STOCK FUTURES

The composition of the top-10 tradable counters had no changes. However, ranking of the list had minor changes. Tata Steel moved up to third rank, while Centex moved down to sixth rank. The top-three tradable counters in this segment were Reliance Industries, Tata Steel and Reliance Communications.

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Except SBI, Tata Steel and Tata Motors, all the other uptrend counters in the list are likely to be under threat for Wednesday's trading. On the contrary, both the downtrend counters in the list are likely to be terminated.

There are two buying and ample selling opportunities for Wednesday's trading. The best bet is likely to be selling in ACC. Bear move on Wednesday is likely to reverse the uptrend in this counter.

Cash segment

The composition of the list had no changes. The ranking of the list had two changes. Bank of India and Infosys interchanged their ranking, while Tata Steel moved down to last rank.

Bear move on Wednesday is likely to terminate all the uptrend counters other than Tata Steel and Tata Motors. On the contrary, except Zee Tele, all the other downtrend counters in the list are under threat.

There are three buying opportunities and five selling opportunities for Wednesday's trading. The best is likely to be selling in Infosys. This counter is in uptrend. Bear move on Wednesday is likely to reverse the prevailing trend in Infosys.

(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.