The Hindu Business Line : Bulls march ahead

Bulls dominated over Tuesday's trading activity. 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 3 points from its previous close. It moved within a range of around 40 points making an intra-day high of 4284 and endedwith a gain of around 11 points from its previous close.

The long position in the May month contract is intact. The long exit and short entry levels are placed far away from its last traded price. These levels are unlikely 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, the ranking in the top-10 list had minor changes. SBI and Reliance interchanged their position. IDBI and Century Textiles also interchanged their position in the top-10 tradable list. The top-3 tradable counters in this segment were Reliance Capital, Reliance and Century Textiles.

Except Bajaj Auto, IDBI and Bank of India, all other counters in the top-10 tradable list are in uptrend. In the uptrend counters, Tata Steel and ONGC are under threat for Wednesday. There are three selling and two buying opportunities likely to exist in the list. The best among the above is likely to be selling in ONGC. This counter is in uptrend. Bear move on Wednesday is likely to reverse the trend in this counter.

Cash Segment: The composition and ranking of the top-10 tradable counters has minor changes. Tata Motors and ONGC made their way into the top-10 list pushing out Satyam and SAIL. Tata Steel and Bajaj Auto interchanged their position.

There are four uptrend and six downtrend counters in the top-10 tradable list. In the uptrend counters, ONGC is under threat for Wednesday. There are five buying and one selling opportunities likely to exist in the list. The best candidate is likely to be selling in ONGC. 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.