The Hindu Business Line : Bull run arrested

Bull run arrested during Tuesday’s trading activity. The sentiment reading of the tradable counters changed to bearish. Bull move on Wednesday 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 month contract opened with a bear gap of around 32 points from its previous close. The November month contract moved within a range of around 73 points. The November month contract closed with a loss of around 29 points from its previous close.

Bear domination during the day reversed the long position in the Nifty November month contract. The short exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Wednesday’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. Reliance Energy and Reliance Capital interchanged their positions. IDBI and SBI interchanged their positions. ICICI Bank and Hindalco interchanged their positions. The long exit level for Satyam is placed at 422.05. The short exit level for Maruti is placed at 960.05.

Except IDBI, Hindalco and ONGC all other counters in the top-10 list are in downtrend. The uptrend counters Hindalco and ONGC are likely to be under threat for Wednesday’s trading. On the other hand, bull move on Wednesday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in Reliance Energy, Reliance Capital, Reliance Industries, SBI, NTPC, Bank of India and ICICI Bank. Selling opportunities are likely to exist in Hindalco and ONGC. The best among the above is likely to selling in Hindalco. This counter is in uptrend. Bear move on Wednesday is likely to reverse the trend in this counter.

Cash segment

The composition and the ranking of the top-10 list had minor changes. Bank of India made its way to top-10 list pushing out SAIL. Bank of India occupied last position in the list. Reliance Industries and Reliance Energy interchanged their positions. Infosys and SBI interchanged their positions. The long exit level for SAIL is placed at 261.05.

Except SBI, IDBI, BHEL and ONGC all other counters in the top-10 list are in downtrend. The uptrend counters SBI and ONGC are likely to be under threat for Wednesday’s trading. On the other hand, bull move on Wednesday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in all downtrend and sideways counters. Selling opportunities are likely to exist in SBI and ONGC. The best among the above is likely to be buying in BHEL. This counter is in sideways mode. Bull move on Wednesday is likely to initiate a fresh uptrend 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.