The Hindu Business Line : Bull domination

Bulls 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 strengthened with additional counters.

NIFTY FUTURES

The December contract opened with a bull gap of around 51 points from its previous close. The contract moved within a range of around 139 points and closed with a gain of around 125 points from its previous close.

The long position in the December Nifty 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 Wednesday’s trading activity.

STOCK FUTURES

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The composition of the top-10 list had no changes. However the ranking of the top-10 list had minor changes. ICICI Bank moved up from seventh to fifth position in the list. NTPC and SBI moved one step lower in the list. HPCL and Tata Steel interchanged their positions.

All the counters in the top-10 list are in uptrend. Except ICICI Bank, SBI and HPCL all other uptrend counters 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 Reliance Energy, Reliance Industries, Reliance Capital, IDBI, NTPC, Tata Steel and Hindalco. The best among the above is likely to be selling in Reliance Energy. This counter is in uptrend. Bear move 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 and IDBI interchanged their positions. The long exit level for GAIL is placed at 504.95.

Except BHEL all other counters in the top-10 list are in uptrend. Except ICICI Bank and Infosys all other uptrend counters are likely to be under threat for Wednesday’s trading.

On the other hand, bull move on Wednesday is likely to terminate BHEL.

There are no buying opportunities for Wednesday’s trading. Selling opportunities are likely to exist in Reliance Energy, Reliance Industries, Reliance Capital, SAIL, SBI, IDBI and Suzlon.

The best among the above is likely to be selling in Reliance Energy. 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.