The Hindu Business Line : Bull domination

Monday’s trading witnessed bull domination. 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

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The November contract opened with a bull gap of around 85 points from its previous close. The contract moved within a range of around 90 points and closed with a gain of around 140 points from its previous close.

Bull domination during the day reversed the short position in the Nifty November contract. 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 and the ranking of the top-10 list had minor changes. ONGC made its way to top-10 list pushing out BHEL. ONGC occupied last position in the list. ICICI Bank moved from seventh to ninth position in the list. Bank of India moved one step higher in the list. Hindalco moved from last to eighth position in the list. The long exit level for Satyam is placed at 422.05. The short exit level for Maruti is placed at 974.50.

Except IDBI and Bank of India all other counters in the top-10 list are in uptrend. Except Hindalco all other uptrend counters in the top-10 list are likely to be under threat for Tuesday’s trading. Bull move on Tuesday is likely to terminate IDBI. A lone buying opportunity is likely to exist in IDBI. Selling opportunities are likely to exist in Reliance Capital, Reliance Energy, Reliance Industries, SBI, NTPC, ICICI Bank and ONGC. The best among the above is likely to selling in ICICI Bank. This counter is in uptrend. Bear move on Tuesday 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. Reliance Energy and Reliance Industries interchanged their positions. IDBI moved from ninth to seventh position in the list. BHEL and ONGC moved one step lower in the list.

All the counters in the top-10 list are in uptrend. All the uptrend counters 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 all the counters. The best among the above is likely to be selling in Reliance Capital. This counter is in uptrend. Bear move on Tuesday 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.