The Hindu Business Line : Bulls prevail

Bulls prevail during Tuesday's trading activity. The sentiment reading of the tradable counters continues to remain bearish. Bull move on Wednesday has the potential to neutralise the sentiment reading. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

June month contract opened with a bear gap of around 2 points from its previous close. The contract moved within a range of around 72 points making an intra-day high of 4155. It closed with a gain of around 27 points from its previous close.

The short position in the June month contract is intact with a huge locked profit of 121 points. The short-exit and long-entry levels are placed nearer to its last traded price. These levels are most likely to be triggered during Wednesday's trading activity.

STOCK FUTURES

The composition and ranking of top 10 tradable list have minor changes. Hindalco made its way to top 10 tradable lists pushing out Tata Motors and it has occupied last position. Reliance and SBI interchanged their positions. The short-exit level of Tata Motors is placed at Rs 696.

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Except Reliance, Tata Steel, ICICI Bank and Hindalco all other counters in the top-10 tradable list are in downtrend. Buying opportunities are likely to exist in Reliance Capital, SBI, Bajaj Auto, IDBI and Century Textiles. Selling opportunities may exist in Reliance and ICICI Bank.

The best among the above is likely to be buying in Reliance Capital. This counter is in down trend. Bull move on Wednesday has the potential to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list has no changes. However, the ranking of the list has minor changes. Tata Steel and SBI interchanged their positions. Satyam and IDBI also interchanged their positions.

Except Reliance and SAIL all other counters in the top-10 tradable list are in downtrend. A lone uptrend counter Reliance is under threat for Wednesday's trading. Buying opportunities exist in Tata Steep, SBI, Infosys, Tata Motors, IDBI and BHEL.

The best is likely to be buying in BHEL. 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.