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 8 points from its previous close. It moved within a range of around 28 points and closed with a gain of 17 points from its previous close.

The long position in the July 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. The long exit level for BHEL is placed at 1628.45.

Except SBI, Reliance Capital, Century Textiles and ICICI Bank, all other counters in the top-10 list are in uptrend. In the uptrend counters, IDBI, ACC and Reliance Industries 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. Buying opportunities are likely in SBI, Reliance Capital, Century Textiles and ICICI Bank. Selling opportunities are likely in IDBI, ACC and Reliance Industries. The best 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.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. Hindalco made its way to top-10 list pushing out Tata Steel. Hindalco occupied seventh position in the list. SBI moved from third to first position. The long exit level from Tata Steel is placed at 651.40.

Click here for table

Infosys, ACC, Satyam and ICICI Bank are in the downtrend in the list. SAIL, Reliance Industries, IDBI, Hindalco and BHEL are in the uptrend. In the uptrend counters Reliance Industries, IDBI and BHEL are under threat for Tuesday’s trading. On the other hand, bull domination on Tuesday is likely to terminate all the downtrend counters except Satyam. Buying opportunities are likely in SBI, Infosys, ACC and ICICI Bank. Selling opportunities are likely in Reliance Industries, IDBI 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.