The Hindu Business Line : Bull domination

Bulls dominated Tuesday's trading activity. Bear move on Wednesday has the potential to change the sentiment reading in its favour. On the contrary, the prevailing bullish sentiment is likely to be strengthened with additional counters.

Nifty Futures

The June contract opened with a bear gap of around two points from the previous close. It moved within a range of around 71 points, clocking an intra-day high of 4,298.05, before closing with a gain of 36 points.

The short position in the contract is intact. The short exit and long entry levels are placed 15 points from last traded price. These levels are likely to be triggered during Wednesday's trading activity.

Stock Futures

The composition and the ranking of the top 10 tradable list saw no changes. The top three tradable counters were SBI, Tata Steel and Reliance Capital.

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Except Reliance Industries, Tata Motors and Satyam, all the counters in the top 10 tradable list are in uptrend.

Among the uptrend counters, Tata Steel, Bajaj Auto and ICICI Bank are under threat for Wednesday.

There are three buying and seven selling opportunities likely to exist in the list. The best candidate is buying in Reliance. This counter is in downtrend. Bull move on Wednesday is likely reverse the trend in this counter.

Cash Segment

The composition and the ranking of the top-10 tradable list saw no changes.

There are four uptrend and six downtrend counters in the top 10 tradable list.

Among the uptrend counters, Tata Steel and ICICI Bank are under threat for Wednesday's trading.

There are six buying and two selling opportunities likely to exist in the list.

The best among them is buying in Bajaj Auto.

This counter is in downtrend. Bull move on Wednesday is likely to reverse the existing position 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.