The Hindu Business Line : Bull domination

Bulls dominated Tuesday'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 contrary, the prevailing bullish sentiment is likely to be further strengthened.

NIFTY FUTURES

The December contract opened with a bear gap of around 7 points from its previous close. However, the bears could not sustain the initial momentum and gave way to bulls. The December contract moved within a range of around 96 points making an intra-day high of 3945. It closed with a gain of around 87 points from its previous close.

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The long position in the December 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, these levels are unlikely to be triggered during Wednesday.

STOCK FUTURES

The composition and the ranking of the top-10 tradable counters had minor changes. NTPC gave way to BHEL, which occupied tenth position. The top-3 tradable counters in this segment were Century Textiles, Reliance and Tata Steel. The long exit level for NTPC is placed at 134.45.

There are eight uptrend and a lone downtrend counter in the top-10 tradable list. The uptrend counters Reliance Industries, Tata Steel and ACC are likely to be under threat for Wednesday's trading. There are two buying opportunities and three selling opportunities for Wednesday's trading.

The best is likely to be buying in Bank of India. This counter is in downtrend. Bull move on Wednesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Steel and i-flex interchanged their positions.

There are nine uptrend and a lone downtrend counter in the top-10 tradable list. Except i-flex, Tata Motors and Satyam, the other uptrend counters are likely to be under threat on Wednesday. There are ample selling opportunities for Wednesday's trading.

The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Wednesday 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.