The Hindu Business Line : Bull domination

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

NIFTY FUTURES

The August month contract opened with a bull gap of around 129 points from its previous close. The August contract moved within a range of around 66 points and closed with a gain of around 114 points from its previous close.

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 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. Reliance Energy and Tata Steel interchanged their positions. BHEL and ACC interchanged their positions.

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Except Tata Steel all other counters in the list are in uptrend. All the uptrend counters are likely to be under threat for Tuesday’s trading. There are no buying opportunities for Tuesday’s trading. Selling opportunities are likely to exist in all the uptrend counters. The best among them is likely to be selling in Reliance Energy. This counter is in uptrend. Bear move on Tuesday 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. SUZLON made its way to the top-10 list pushing out ITC. SUZLON occupied ninth position in the list. IDBI moved one step lower in the list. The short exit level for ITC is placed at 159.05.

Except Tata Steel and Infosys all other counters in the list are in uptrend. Except SUZLON all other uptrend counters are likely to be under threat for Tuesday’s trading. There are no buying opportunities for Tuesday’s trading. Selling opportunities are likely to exist in all the uptrend counters except SUZLON. The best among the above is likely to be selling in Reliance Energy. This counter is in uptrend. Bear move on Tuesday 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.