The Hindu Business Line : Sideways movement

Tuesday's trading activity witnessed a sideways movement. However, the sentiment reading of the tradable counters remains bullish. Bear move on Wednesday is likely to change the sentiment in its favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

NIFTY FUTURES

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The July month contract opened in the same point as it previously closed. It moved within a range of around 28 points and closed with a loss of 13 points.

The long position in the July month futures is undisturbed. The long exit and short entry levels are placed near to its last traded price. These levels are likely 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. Tata Steel and ACC interchanged their positions. The short-exit level for Hindalco is placed at Rs 156.55.

Except Reliance Capital, Reliance Industries and ICICI Bank all other counters in the list are in uptrend. Except ACC, all other uptrend counters 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 exist in Reliance Capital, Reliance Industries and ICICI Bank.

Selling opportunities are present in Reliance Capital, SBI, IDBI, Tata Steel, Century Textiles, Bank Of India and ONGC. It would be best to sell SBI. This counter is in uptrend. Bear move on Wednesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 list had minor changes. TCSmade its way to the list pushing out SAIL and occupied last position. IDBI and Reliance Industries interchanged their position. Tata Steel moved down from fifth to seventh position in the list. Infosys and ICICI Bank moved one step higher in the list.

Except SBI, Reliance Industries and ICICI Bank all other counters in the list are in uptrend. Other than Infosys and Satyam all other uptrend counters 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 exist in SBI, Reliance Industries and ICICI Bank, and selling opportunities in SBI, ACC, IDBI, Tata Steel, BHELand TCS. The best among the above is to sell ACC, as 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.