The Hindu Business Line : Bull domination

Tuesday's trading witnessed bull domination. The sentiment reading of the tradable counters changed to bullish. Bear move on Wednesday is likely 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 June month contract opened with a bear gap of around 11 points from its previous close. However, bears were not able to sustain their initial momentum and allowed bulls to gain hold over Tuesday's trading. The June contract moved within a range of around 51 points. The June contract closed with a gain of around 32 points from its previous close.

The long position in the June nifty futures 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.

STOCK FUTURES

The composition of the top-10 tradable list had a minor change. However, the ranking of the list had no changes. ICICI made its way to top-10 list pushing out Tata Motors.

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Except Satyam and ICICI Bank all other counters in the top-10 list are in uptrend. Bear domination on Wednesday is likely to terminate all the uptrend counters except Reliance Capital and IDBI. On the other hand, all the downtrend counters are under threat for Wednesday's trading. Buying opportunities are likely to exist in Satyam and ICICI Bank. Selling opportunities are likely to exist in SBI, Reliance Industries, Tata Steel, Century Textiles, Hindalco and BHEL. The best among these is selling in Reliance Industries. This counter is in up trend. Bear move on Wednesday is likely to reverse the current position in this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. However, ranking of the top-10 tradable list had minor changes. BHEL and Satyam interchanged their positions.

Except Infosys, Satyam and Tata Motors, all the other counters in the top-10 list are in uptrend. All uptrend counters are likely to be under threat for Wednesday's trading. Bull domination on Wednesday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in the Infosys, Satyam and Tata Motors. The selling opportunities are likely to exist in SBI, Reliance Industries, IDBI, SAIL, Tata Steel, Satyam, BHEL and Hindalco.

The best among the above is likely to be selling in Reliance Industries. This counter is in uptrend.

Bear move on Wednesday is likely to reverse the existing 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.