The Hindu Business Line : Bear domination

Tuesday’s trading activity witnessed bear domination. However, the sentiment reading of the tradable counters remains 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.

Nifty futures

The July month contract opened with a bull gap of around 7 points from its previous close. However the initial up movement is not sustained and gave way to bear. The July month contract moved within a range of around 60 points and closed with a loss of 12 points from its previous close.

The long position in the July month 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 Wednesday’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. IDBI and Reliance Capital, ICICI Bank and Hindalco interchanged their positions in the list. Reliance Industries moved two steps higher in the list. ACC and Tata Steel moved one step lower in the list.

Except IDBI all other counters in the top-10 list are in uptrend.

Except Reliance Industries, Tata Steel and Bank Of India all other uptrend counter are under threat for Wednesday’s trading. Selling opportunities are likely to exist in SBI, IDBI, Reliance Capital, ACC, Century Textiles, Hindalco and ICICI Bank.

The best is likely to be selling in SBI. This counter is in uptrend. Bear move on Wednesday is likely to reverse the trend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had minor changes. TCS made its way to top-10 list pushing out ICICI Bank. TCS occupied last position in the list. Infosys and SAIL, Satyam and BHEL interchanged their position in the list. The long exit level form Tata Steel is placed at 651.40.

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Except IDBI and BHEL all other counters in the top-10 list are in uptrend. Except SAIL and Reliance Industries all other uptrend counters are under threat for Wednesday’s trading. The selling opportunities are likely to exist in SBI, ACC, Infosys, IDBI, Hindalco, Satyam and TCS.

The best among the above is likely to be selling in TCS. This counter is in uptrend. Bear move on Wednesday is likely to reverse the 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.