The Hindu Business Line : Bull domination

Bull dominated over Tuesday's trading activity. However, the sentiment reading of the tradable counters turned to bearish. Bull move on Wednesday has the potential to change the sentiment reading in their favour. On the contrary, bearish trend is likely to be further strengthened with additional counters.

NIFTY FUTURES

The May month contract opened with a bear gap of around one point from its previous close. However, the initial bear momentum was not sustained and gave way to bull. The May contract moved within a range of around 56 points making an intraday high of 4302. The May contract closed with a gain of around 33 points from its previous close.

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The long position in the May contract is exited. The long entry level is placed eight points and short entry level is placed far away from its last traded price. The long entry level is likely to be trigger and the short entry level is unlikely to be trigger during Wednesday's trading activity.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. ACC went out from the top-10 tradable list and it is filled by BHEL.

BHEL occupied ninth position and pushed Tata Motors to last position. The long exit levels for ONGC and ACC is placed at 908.20, 861 respectively. The top-three tradable counters in this segment were Reliance, SBI and L&T.

There are seven downtrend and two uptrend counters in the top-10 tradable list. A lone uptrend counter Tata Motors in the list is under threat for Wednesday. Eight buying and two selling opportunities are likely to be exist in the list. The best among the above is likely to be buying in SBI. This counter is in uptrend. Bear move on Wednesday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. Tata Motors went out from the top-10 tradable list and it is replaced by BHEL.

BHEL occupied eighth position and pushed TCS and SAIL to a step down in the ranking of the top-10 list. The long exit level for Tata Motors is placed at 730.10.

The four uptrend and five downtrend counters are in the top-10 list. In the uptrend counters, Bajaj Auto, Tata Steel and ICICI are under threat for Wednesday. Six buying and four selling opportunity are 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.