The Hindu Business Line : Bulls gain control

Tuesday’s trading activity witnessed bull domination. 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 strengthened.

NIFTY FUTURES

The August contract opened with a bear gap of around 3 points from its previous close. It moved within a range of around 48 points and closed with a gain of around 2 points from its previous close.

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The long position in the August Month Nifty Futures contract is undisturbed. The long exit and short entry levels are placed away from its last traded price. These levels are unlikely to be triggered during Wednesday’s trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. Tata Steel and Reliance Energy interchanged their positions.

All the counters in the list are in uptrend. In the uptrend counters SBI, Reliance Industries, IDBI, Reliance Energy, ICICI Bank, Century Textiles and ACC are under threat for Wednesday’s trading. There are no buying opportunities for Wednesday’s trading. Selling opportunities are likely to exist in SBI, Reliance Industries, IDBI, Reliance Energy, ICICI Bank, Century Textiles and ACC. The best among the above is likely to be selling 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 minor changes. Satyam made its way to top-10 list pushing out Suzlon. Satyam occupied last position in the list.

All the counters in the list are in uptrend. In the uptrend counters, Reliance Industries, SBI, ICICI Bank, Infosys, Reliance Energy and IDBI are under threat for Wednesday’s trading. There are no buying opp ortunities for Wednesday’s trading. Selling opportunities are likely to exist in Reliance Industries, SBI, ICICI Bank, Infosys, Reliance Energy and IDBI. The best among the above is likely to be selling in ICICI Bank. This counter is in uptrend. Bear move on Wednesday is likely to reverse the prevailing 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.