The Hindu Business Line : Bulls prevail

Bulls prevailed over Monday’s trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment is likely to be continued.

Nifty Futures

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The February month contract opened with a bull gap of around 98 points from its previous close. The February month contract moved within a range of around 185 points. The February month contract closed with a gain of around 157 points from its previous close.

The long position in the February month 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 Tuesday’s trading activity.

Stock futures

The composition and the ranking of the top-10 list had no changes. All the counters in the top-10 list are in uptrend. Except NTPC, Tata Steel, IDBI and ONGC all other 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 Reliance Energy, Reliance Industries, Reliance Capital, ICICI Bank, SBI and MTNL. The best is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Tuesday is likely to reverse the existing trend in this counter.

Cash segment

The composition of the top-10 tradable list had minor changes. Tata Steel made its way to top-10 list pushing out ITC. The ranking had no changes. The long exit level for ITC is placed at 201.60.

All the counters in the top-10 list are in uptrend. Except Reliance Capital, ONGC, IDBI and Tata Steel all other counters in the top-10 list 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 Industries, Reliance Energy, ICICI Bank, SAIL, SBI and BHEL. The best among the above is likely to be selling in BHEL. 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.

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