The Hindu Business Line : Bull run arrested

Bull run arrested was during Tuesday's trading activity. However, the sentiment reading of the tradable counters remains bullish. Bear move on Wednesday has the potential to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty Futures: The May month contract opened with a bear gap of around 6 points from its previous close. It moved within a range of around 45 points making an intra-day high of 4146.40 and ended with a loss of around 14 points from its previous close.

The long position in the May month contract is exited and a fresh downtrend initiated. The short exit and long entry levels are placed 25 points away from its last traded price. These levels are likely to be triggered during Wednesday's trading activity.

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Stock Futures: The composition of the top-10 tradable list has no changes. However, there is a minor change in ranking with Satyam moving from seventh to last position in the list. The top-3 tradable counters in this segment were SBI, Reliance and Reliance Capital.

Except Reliance, ACC, Satyam, all other counters in the top-10 tradable list are in uptrend. There are six uptrend counters in the list under threat for Wednesday. There are three buying and six selling opportunities likely to exist in the list. The best among the above is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Wednesday is likely to reverse the trend in this counter.

Cash Segment: The composition of the top-10 tradable counters has no changes. However, there is a minor change in the ranking. Satyam and SBI interchanged their position. SAIL moved from eighth to last position and IDBI moved to seventh position from ninth in the list.

There are four downtrend and six uptrend counters in the top-10 tradable list. There are five uptrend counters in the list under threat for Wednesday. There are four buying and five selling opportunities likely to exist in the list. The best candidate is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Wednesday is likely to reverse the 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.