The Hindu Business Line : Bull domination

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

NIFTY FUTURES

The July month contract opened with a bull gap of around 20 points from its previous close. The contract moved within a range of around 30 points and closed with a gain of 35 points from its previous close.

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The long position in the July month nifty futures contract is undisturbed. The long exit and short entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Tuesday’s trading activity.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. Tata Steel and Reliance Industries interchanged their position in the list. The short exit level for Hindalco is placed at 157.05.

Except IDBI, Reliance Industries and ICICI Bank all other counters in the top-10 tradable list are in uptrend. In the uptrend counters, Reliance Capital, SBI, Tata Steel and ONGC are likely to be under threat for Tuesday’s trading.

On the other hand, Bull domination on Tuesday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in IDBI, Reliance Industries and ICICI Bank for Tuesday’s trading. Selling opportunities are likely to exist in Reliance Capital, SBI, Tata Steel and ONGC. The best is likely to be buying in IDBI. This counter is in downtrend. Bull move on Tuesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had no changes. Except SBI, IDBI, ICICI Bank and SAIL, all other counters in the list are in uptrend. Except ACC and Satyam, all other uptrend counters are likely to be under threat for Tuesday’s trading. On the other hand, Bull domination on Tuesday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in SBI, IDBI, ICICI Bank and SAIL. The selling opportunities are likely to exist in SBI, Reliance Industries, Tata Steel, Infosys and BHEL. The best among the above is likely to be buying in SBI. This counter is in sideways mode. Bull move on Tuesday is likely to initiate a fresh uptrend 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.