The Hindu Business Line : Bull domination

Bulls dominated Tuesday's trading activity. However, the sentiment reading of the tradable counters remains bearish. Bull move on Wednesday 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

April contract opened around its previous close. The contract moved within a range of around 82 points making an intra-day high of 3682.90. It closed with a gain of around 54 points from its previous close.

The short position in the April contract remains intact. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during the normal course of trading during Wednesday.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. Tata Motors gave way to BHEL. BHEL occupied tenth position in the ranking. Bank of India moved up while TCS moved down. The top-3 tradable counters in this segment were Reliance Industries, SBI and ICICI.

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Most of the counters in the list are in downtrend. Except Century Tex, other downtrend counters are likely to be under threat for Wednesday's trading. There are ample buying opportunities for Wednesday's trading.

The best among them is likely to be selling in SBI. This counter is in sideways mode. Bear move on Wednesday is likely to initiate a fresh downtrend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking had minor changes. Satyam, BHEL and ICICI moved up in the ranking while ITC, ACC and SBI moved down.

Most of the counters in the top-10 tradable list are in downtrend. Except Tata Motors, other downtrend counters are likely to be under threat for Wednesday's trading.

On the other hand, the uptrend counter ITC is likely to be terminated. There are ample buying opportunities and a lone selling opportunity for Wednesday's trading. The best among them is likely to be buying in Satyam. This counter is in downtrend. Bull 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.