The Hindu Business Line : Bulls march ahead

Bulls dominated Tuesday's trading activity. The sentiment reading of the tradable counters turned bullish. Bear move on Wednesday is unlikely to change the current sentiment. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

June month contract opened with a bull gap of around 2 points from its previous close. The contract moved within a range of around 113 points. It closed with a gain of around 84 points from its previous close.

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The short position in Nifty Future June month contract is terminated and turned to new uptrend. The long exit and short entry levels are placed faraway from its last traded price. These levels are unlikely to be triggered during Wednesday's trading activity.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Reliance and Tisco interchanged positions, so did Century Textiles and Satyam.

There are eight up trend counters in the top-10 list except Satyam and Hindalco. ICICI Bank and Tata Motors are the up trend counters, which are under threat for Wednesday. The two down trend counters are also under threat.

Buying opportunities are likely to exist in Satyam and Hindalco. ICICI and Tata Motors are the opportunities in sell side. The best among these is to buy Hindalco. This counter is in down trend, the bull move on Wednesday may reverse the current position in this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. The ranking of the top-10 tradable list had minor changes. Tisco and Reliance interchanged their positions.

Infosys, Satyam and Hindalco are the downtrend counters in the top-10 list. All other counters are in up trend.

Two up trend counters and three downtrend counters are under threat for Wednesday. The up trend counters are Tata Motors and BHEL. The down trend counters are Infosys, Satyam and Hindalco.

The buying and selling opportunities exist in the scripts mentioned above. The best candidate is likely to be buying in Hindalco. This counter is in downtrend. Up 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.