The Hindu Business Line : Bulls prevail

Bulls prevailed during Monday’s trading activity. 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, prevailing bullish sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

The September month contract opened with a bull gap of around 42 points from its previous close. The September month contract moved within a range of around 85 points. The September month contract closed with a gain of 90 points from its previous close.

The long position in the September month Nifty 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.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. NTPC and Century Textiles interchanged their positions in the list. The long exit level for BHEL is placed at 1963.95.

Click here for table

Except Century Textiles and ACC all other counters in the list are in uptrend. The uptrend counters SBI and Tata Steel are likely to be under threat for Tuesday’s trading. Buying opportunities are likely to exist in Century Textiles and ACC. Selling opportunities are likely to exist in SBI and Tata Steel. The best among the above is likely to be buying in Century Textiles. This counter is in sideways mode. Bull move on Tuesday 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 tradable counters had minor changes. Reliance Energy moved from fourth to second position in the list. Reliance Capital, ICICI Bank and SAIL moved one step lower in the list. SBI moved from fifth to seventh position in the list. Tata Steel moved one step higher in the list. IDBI moved from eighth to sixth position in the list.

Except Infosys, all other counters in the list are in uptrend. The uptrend counters Tata Steel, SBI and HDFC 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 Tata Steel, SBI, Infosys and HDFC. The best is likely to be selling in Infosys. This counter is in sideways mode. Bear move on Tuesday is likely to initiate a fresh downtrend 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.