The Hindu Business Line : Bull domination

Bull dominated over Tuesday’s trading activity. 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, the current sentiment reading is likely to be continued.

Nifty Futures

The October month contract opened with a bull gap of around 90 points from its previous close. The October month contract moved within a range of around 239 points. The October month contract closed with a gain of around 308 points from its previous close.

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The short position in Nifty October month contract is reversed due to bull domination. 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 Wednesday’s trading activity.

Stock futures

The composition and the ranking of the top-10 list had minor changes. BHEL made its way to top-10 list pushing out ONGC. BHEL occupied last position in the list. Tata Steel and Tata Power interchanged their positions in the list. The long exit level for ONGC is placed at 1108.55. All the counters in the top-10 list are in uptrend. ICICI Bank is likely to be under threat for Wednesday’s trading. There are no buying opportunities for Wednesday’s trading. A lone selling opportunity is likely to exist in ICICI Bank. This counter is in uptrend. Bear domination on Wednesday is likely to reverse the trend in this counter.

Cash segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. BHEL moved from last to eighth position in the list. SBI and Tata Steel moved one step lower in the list.

All the counters in the top-10 tradable list are in uptrend. ICICI Bank and Infosys are likely to be under threat for Wednesday’s trading. There are no buying opportunities for Wednesday’s trading. Selling opportunities are likely to exist in ICICI Bank and Infosys. The best is likely to be selling in Infosys. 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.