The Hindu Business Line : Bull domination

Monday’s trading activity witnessed sideways movement. However, the sentiment reading of the tradable counters remains 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 September contract opened with a bull gap of around 6 points from its previous close. The contract moved within a range of around 36 points and closed with a gain of around 17 points from its previous close.

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The long position in the September contract is undisturbed. 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 Tuesday’s trading activity.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. NTPC made its way to the list pushing out Infosys. Tata Steel and SBI interchanged their position. ICICI Bank and Reliance Energy interchanged their position. The long exit level for Infosys is placed at 1832.00.

Except SBI all other counters are in uptrend. In the uptrend counters ICICI Bank, Reliance Energy and Century Textiles are likely to be under threat for Tuesday’s trading. Buying opportunity is likely to exist in SBI. Selling opportunities are likely to exist in ICICI Bank, Reliance Energy and Century Textiles. The best among the above is likely to be selling in Century Textiles. This counter is in uptrend. Bear move on Tuesday is likely to reverse the prevailing trend in thi s counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had no changes. All the counters in the list are in uptrend. In the uptrend counters ICICI Bank, SBI, Infosys, Reliance Energy and Satyam 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 ICICI Bank, SBI, Infosys, Reliance Energy and Satyam. The best among the above is likely to be selling in SBI. This counter i s in uptrend. Bear move on Tuesday 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.