The Hindu Business Line : Bull domination

Bulls dominated Monday's trading activity. However, the sentiment reading of the tradable counters remains 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 March contract opened with a bull gap of around 28 points from its previous close. It moved within a range of around 75 points making an intra-day high of 3673 and closed with a gain of around 80 points over its previous close.

The short position in the March contract exited and entered long. The long exit and short entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Tuesday's trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. Reliance Capital moved up in the ranking while IDBI moved down. The top-3 tradable counters in this segment were Reliance Communications, Reliance Industries and SBI.

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There are six downtrend counters and four uptrend counters in the top-10 tradable list. Except Reliance Capital, other uptrend counters are likely to be under threat for Tuesday's trading. On the other hand, all the downtrend counters are likely to be terminated. There are ample buying opportunities and three selling opportunities for Tuesday's trading. The best among them is likely to be buying in ICICI. This counter is in downtrend. Bull move on Tuesday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. Satyam, ITC and TCS moved up in the ranking while SAIL, ICICI and Tata Steel moved down. The short exit level for Reliance Industries is placed at 1301.15.

There are five downtrend counters and three uptrend counters in the top-10 tradable list. All the counters are likely to be under threat for Tuesday's trading. There are six buying opportunities and four selling opportunities for Tuesday's trading. The best among them is likely to be buying in TCS. This counter is in sideways movement. Bull move on Tuesday is likely to initiate a fresh uptrend 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.