The Hindu Business Line : Bull domination

Tuesday’s trading activity witnessed a 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, prevailing bullish sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

The September month contract opened around its previous close.

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The September contract moved within a range of around 79 points and closed with a gain of 55 points from its previous close.

Bull move during the day led to reversal of the short position in the September Nifty 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 Wednesday’s trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, there is a minor change in the ranking.

Tata Steel and Reliance Industries interchanged their positions. The long exit level for ACC is placed at 1109.95.

Except Tata Steel, Century Textiles and NTPC all other counters in the list are in uptrend.

Except Reliance Capital and SBI all other uptrend counters in the list are likely to be under threat for Wednesday’s trading. On the other hand, bull domination on Wednesday is likely to terminate all the downtrend counters.

Buying opportunities are likely to exist in Tata Steel, Century Textiles and NTPC. Selling opportunities are likely to exist in Reliance Energy, Tata Steel, Reliance Industries, IDBI, ICICI Bank and BHEL.

The best among the above is likely to be buying in Tata Steel. This counter is in sideways mode. Bull move on Wednesday is likely to initiate a fresh uptrend 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. Reliance Capital and Reliance Industries interchanged their positions. BHEL and Infosys interchanged their positions.

Except Tata Steel, SAIL and Infosys all other counters in the list are in uptrend. The uptrend counters Reliance Industries, Reliance Energy, IDBI and BHEL are likely to be under threat for Wednesday’s trading.

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

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

Selling opportunities are likely to exist in Reliance Industries, Reliance Energy, IDBI and BHEL. The best is likely to be selling in BHEL.

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.