The Hindu Business Line : Bull domination

Monday’s trading activity witnessed bull movement. The sentiment reading of the tradable counters turned bullish. Bull move on Wednesday is likely to strengthen the current sentiment reading in their favour. On the contrary, the bears are likely to change the sentiment reading to their favour.

Nifty Futures

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The December month contract opened with a bull gap of around 85 points from its previous close. The December month contract moved within a range of around 150 points. The December month contract closed with a gain of around 202 points from its previous close.

The short position in the December month Nifty contract is terminated and initiated a fresh long position. 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 of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. GAIL and ICICI Bank interchanged their positions.

Except IDBI, State Bank and MTNL all other counters in the top-10 list are in uptrend. The uptrend counters Reliance Industries, Reliance Capital and NTPC 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 IDBI, State Bank and MTNL.

Selling opportunities are likely to exist in Reliance Industries, Reliance Capital and NTPC. The best among the above is likely to be buying in MTNL. This counter is in downtrend. Bull move on Wednesday 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 list had minor changes. HDFC and Tata Steel interchanged their positions.

Except Reliance Energy and BHEL all other counters in the top-10 list are in uptrend. The lone downtrend counter BHEL is likely to be under threat for Wednesday’s trading. On the other hand, bear move on Wednesday is likely to terminate SAIL and Reliance Capital. Buying opportunities are likely to exist in Reliance Energy and BHEL. Selling opportunities are likely to exist in Reliance Capital and SAIL. The best is likely to be buying in Reliance Energy. 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.