The Hindu Business Line : Bulls march ahead

Monday's trading activity witnessed bull domination. However, the sentiment reading of the tradable counters changed to marginally bearish. Bull move on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

Nifty futures: The December contract opened with a bear gap of around 20 points from its previous close. However, the bears could not sustain the initial momentum and gave way to the bulls. The contract moved within a range of around 128 points, clocking an intra-day high of 3,938. It closed with a gain of around 64 points from the previous close.

The long position in the contract exited and entered short. The short position was neutralised during the latter part of the trading.

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The long entry level is placed quite nearer to its last traded price. Bull move on Tuesday is likely to trigger a fresh long position in the contract.

Stock futures: The composition of the top 10 tradable counters had no changes. However, the ranking of the list had minor changes. Reliance, There are six downtrend counters and one uptrend counter in the top 10 tradable list.

Except i-flex, all other downtrend counters in the list are likely to be under threat for Tuesday's trading. On the other hand, Tata Steel, the lone uptrend counter, is likely to be terminated.

There are ample buying opportunities and a lone selling opportunity in Tuesday's trading. The best is likely to be selling in Tata Steel. Bear move on Tuesday is likely to reverse the existing trend in this counter.

Cash segment: The composition and ranking of the top 10 tradable list had minor changes. ICICI Bank gave way to BHEL, which occupied 10th slot in the ranking. The long exit level for Bank of India is placed at Rs 184.65. The short exit level for ICICI Bank is placed at Rs 890.05.

There are five downtrend and three uptrend counters in the top 10 tradable list. Except Zee and BHEL, all other downtrend counters are likely to be under threat in Tuesday's trading.

On the other hand, the uptrend counter Satyam is likely to be terminated.

There are five buying opportunities and a lone selling opportunity in Tuesday's trading. The best is likely to be selling in Satyam. This counter is in uptrend. Bear move on Tuesday is likely to reverse the prevailing 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.