The Hindu Business Line : Bulls prevail

Bulls prevailed over Monday’s trading activity. 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 current bullish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

October month contract opened with a bull gap of around 22 points from its previous close. The contract moved within a range of around 89 points. It closed with a gain of around 25 points from its previous close.

The long position in the October month contract is undisturbed. The long exit and short entry levels are placed quite faraway from its last traded price. These levels are unlikely to be triggered during Wednesday’s trading.

STOCK FUTURES

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

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Except Infosys all other counters in the top-10 tradable list are in uptrend. In the uptrend counters SBI, IDBI, Century Textiles and ACC are likely to be under threat for Wednesday’s trading.

Bull domination on Wednesday may terminate the downtrend counter Infosys. Buying opportunities may exist in Infosys. Selling opportunities exist in SBI, IDBI, Century Textiles and ACC. It would be best to sell IDBI. 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 no changes. However, the ranking of the tradable counters had minor changes. Reliance Capital and Reliance Industries interchanged their positions. SBI and ICICI Bank also interchanged their positions.

Except SBI, Infosys and HDFC all other counters in the list are in uptrend. The uptrend counters Reliance Industries and IDBI are likely to be under threat for Wednesday’s trading.

On the other hand, bull domination on Wednesday is likely to terminate Infosys and HDFC. Buying opportunities may exist in these counters. Selling opportunities are likely to exist in Reliance Industries and IDBI. It may be a best move to sell IDBI. This counter is in uptrend. Bear pressure on Wednesday is likely to reverse the existing trend.

(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.