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 Tuesday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment reading is likely to be strengthened with additional counters.

Nifty Futures

The November month contract opened with a bull gap of around 88 points from its previous close. The November month contract moved within a range of around 151 points. The November month contract closed with a gain of around 206 points from its previous close.

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The long position in the Nifty November month contract is intact. 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 of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. BHEL and IDBI interchanged their positions.

Except Tata Steel all other counters are in uptrend. The uptrend counters Reliance Energy, SBI, NTPC, ICICI Bank and IDBI 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 Reliance Energy, SBI, NTPC, ICICI Bank and IDBI. The best is likely to be selling in IDBI. This counter is in uptrend. Bear domination on Tuesday is likely to reverse the existing 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 and SBI interchanged their positions in the list.

Except Tata Steel, all other counters are in uptrend in the list. The uptrend counters Reliance Energy, Reliance Capital and Infosys 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 Reliance Energy, Reliance Capital and Infosys. The best is likely to be selling in Infosys. This counter is in uptrend. Bear move on Tuesday is likely to reverse the existing 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.