The Hindu Business Line : Bull domination

Tuesday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters remains bullish. Bear move on Wednesday is likely to change the sentiment reading in their favor. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The July month contract opened with a bull gap of around 22 points from its previous close. The July contract moved within a range of around 39 points. It closed with a gain of around 54 points from its previous close.

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The long position in the July nifty futures contact 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 activity.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. IDBI and Reliance Industries interchanged their positionThe short exit level for ONGC is placed at 881.95.

Except Tata Steel and Hindalco all other counters in the top-10 tradable list are in uptrend. In the uptrend counters Reliance Capital, Reliance Industries, Satyam and ICICI Bank are likely to be under threat for Wednesday’s trading. On the other hand, bull domination on Wednesday is likely to terminate all the downtrend counters in the list.

Buying opportunities are likely to exist in Tata Steel and Hindalco. Selling opportunities are likely to exist in Reliance Capital, Reliance Industries, Satyam and ICICI Bank.

The best is likely to be buying in Tata Steel. This counter is in downtrend. Bull move on Wednesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. ACC and BHEL moved one step up higher in the list.

Except Reliance Industries, Tata Steel, SAIL and Satyam all other counters in the list are in uptrend. In the uptrend counters Infosys and Tata Motors are likely to be under threat for Wednesday’s trading.

On the other hand, bull domination on Wednesday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in Reliance Industries, Tata Steel, SAIL and Satyam. The selling opportunities are likely to exist in Infosys and Tata Motors.

The best among the above is likely to be buying in Satyam. This counter is in downtrend. Bull 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.