The Hindu Business Line : Bull domination

Tuesday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters changed to 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 strengthened with additional counters.

Nifty Futures: The August month contract opened with a bull gap of around 20 points from its previous close. It moved within a range of around 126 points, before closing with a gain of 110 points. Bull domination during the day initiated a fresh uptrend in the contract. 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 had minor changes. SBI and Reliance Energy, ICICI Bank and Century Textiles interchanged their positions. Reliance Industries, Reliance Capital, Tata Steel, ACC and Hindalco are in downtrend.

SBI, Reliance Energy, IDBI, Century Textiles and ICICI Bank are in uptrend. ICICI Bank is under threat for Wednesday’s trading. On the other hand, bull domination on Wednesday is likely to terminate all downtrend counters.

Buying opportunity is likely to exist in Reliance Industries, Reliance Capital, Tata Steel, ACC and Hindalco. Selling opportunity is likely to exist in ICICI Bank.

The best among the above is likely to be buying in Reliance Capital.

This counter is in downtrend. Bull move on Wednesday is likely to reverse the existing trend in this counter.

Cash Segment: The composition and the ranking of the top 10 tradable list had minor changes. BHEL made its way to the list, pushing out Satyam. BHEL occupied eighth position in the list. Reliance Energy and SAIL interchanged their positions. Tata Steel moved one step lower.

Reliance Industries, Infosys, Reliance Energy, ACC, SBI and BHEL are in uptrend. Reliance Capital, SAIL and Tata Steel are in downtrend.

Infosys, Reliance Energy and ACC are under threat for Wednesday’s trading.

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On the other hand, bull domination on Wednesday is likely to terminate all downtrend counters.

Buying opportunities are likely to exist in Reliance Capital, SAIL and Tata Steel.

Selling opportunities are likely to exist in Infosys, Reliance Energy, ACC and ITC.

The best among the above is likely to be buying in Tata Steel.

This counter is in downtrend. Bull 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.