The Hindu Business Line : Bull domination

Trading activity witnessed bull domination on Monday. However, the sentiment reading of the tradable counters continues to remain bearish. Further, bull move on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.

Nifty futures

The July month contract opened with a bear gap of around 25 points from its previous close. However, bears were not able to sustain their initial momentum and gave way to bulls. The contract moved within a range of around 99 points. It closed with a gain of 69 points from its previous close.

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

Stock futures

The composition and the ranking of the top-10 tradable list had no changes. Except Reliance Industries, Tata Steel, Reliance Capital and Century Textiles all other counters in the top-10 list are in downtrend.

Except Century Textiles all other uptrend counters are under threat for Tuesday’s trading. On the other hand, bull domination on Tuesday is likely to terminate all downtrend counters. Buying opportunities are likely to exist in SBI, ACC, IDBI, Hindalco, ICICI Bank and Bank of India. Selling opportunities are likely to exist in Reliance Industries, Tata Steel and Reliance Capital. The best is likely to be buying in SBI. This counter is in downtrend. Bull move on Tuesday is lik ely to reverse the trend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. Except Reliance Industries, Tata Steel, Satyam and TCS all other counters are in downtrend. In the uptrend counters, Tata Steel is likely to be under threat for Tuesday’s trading.

On the other hand, bull domination on Tuesday is likely to terminate all downtrend counters in the list. Buying opportunities are likely to exist in Infosys, ACC, SAIL, SBI, IDBI, Hindalco and TCS. Selling opportunities are likely to exist in Tata Steel and TCS. The best among the above is likely to be buying in SBI. This counter is in downtrend. Bull move on Tuesday 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.