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K. Premkumar

Tuesday’s trading activity witnessed volatile movement. The sentiment reading of the tradable counters remains bearish. Bull domination on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment reading is likely to be strengthened.

NIFTY FUTURES

The March contract opened with a bull gap of around 5 points from its previous close. The March contract moved within a range of around 154 points and closed with a gain of around 45 points from its previous close.

Bull move during the day reversed the downtrend in the Nifty March 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 Wednesday’s trading.

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. Tata Steel and SBI interchanged their positions.

Except NTPC, Satyam and Infosys, all other counters in the top-10 list are in downtrend. The uptrend counter NTPC is likely to be under threat for Wednesday’s trading. On the other hand, bull move on Wednesday is likely to terminate ICICI Bank. A lone buying opportunity is likely to exist in ICICI Bank. Selling opportunities are likely to exist in NTPC and Infosys. The best is likely to be selling in Infosys. This counter is in sideways mode. Bear move on Wednesday is likely to initiate a fresh downtrend in this counter.

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Industries moved from fourth to second position in the list. Reliance Energy and ICICI Bank moved one step lower in the list.

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

On the other hand, bull move on Wednesday’s is likely to terminate ICICI Bank. A lone buying opportunity is likely to exist in ICICI Bank.

Selling opportunities are likely to exist in BHEL and Suzlon. The best is likely to be selling in BHEL. This counter is in uptrend. Bear move on Wednesday 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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