The Hindu Business Line : Sideways movement

Tuesday’s trading activity witnessed sideways movement. However, 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 37 points from its previous close. The August month contract moved within a range of around 46 points. The August month contract closed with a gain of one point from its previous close.

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Bull domination during the day initiated a fresh uptrend in the August month Nifty futures contract. The long exit and short entry levels are placed nearer to its last traded price. These levels are likely to be triggered during Wednesday’s trading activity.

Stock futures

The composition and the ranking of the top-10 tradable list had no changes.

Except ICICI Bank and Hindalco, all other counters in the list are in uptrend. Except IDBI all the uptrend counters are under threat for Wednesday’s trading. On the other hand, bull domination on Wednesday is likely to terminate ICICI Bank. A lone buying opportunity is likely to exist in ICICI Bank. Selling opportunities are likely to exist in Reliance Industries, SBI, Reliance Capital, Reliance Energy, Tata Steel, ACC and BHEL. The best is likely to be sel ling in ACC. This counter is in uptrend. Bear move on Wednesday is likely to reverse the existing trend in this counter.

Cash segment

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. SBI and Infosys interchanged their positions in the list. ITC and Tata Steel interchanged their positions in the list. The short exit level for Hindalco is placed at 172.55.

Except Reliance Industries and Infosys all other counters in the list are in uptrend. All the uptrend counters are under threat for Wednesday’s trading. On the other hand, bull domination on Wednesday is likely to terminate Reliance Industries. Buying opportunities are likely to exist in Reliance Industries and Infosys. Selling opportunities are likely to exist in Reliance Industries, SBI, Infosys, Reliance Capital, SAIL, BHEL, ITC, Tata Steel and ACC. The best among the above is likely to be selling in ITC. 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.