The Hindu Business Line : Bull domination

Bear 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 with additional counters.

Nifty Futures

The March month contract opened with a bull gap of around 118 points from its previous close. The March month contract moved within a range of around 173 points. The March month contract closed with a gain of around 271 points from its previous close.

The long position in the Nifty March month 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.

Stock futures

The composition and the ranking of the top-10 list had minor changes. BHEL made its way to the top-10 list pushing out Satyam. NTPC and Hindalco interchanged their positions. The long exit level for Satyam is placed at 400.

Except Tata Steel, all other counters in the top-10 list are in uptrend. All the exit and entry levels are placed quit far away from their last traded prices. The nearest level is likely to be selling in NTPC. Bear move on Wednesday is likely to reverse the existing trend in this counter.

Cash segment

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The composition and the ranking of the top-10 list had minor changes. Infosys made its way to top-10 list pushing out Tata Steel. Reliance Capital moved from fourth to second position in the list. ICICI Bank and Reliance Energy moved one step lower in the list. BHEL and SBI interchanged their positions. Suzlon moved one step lower in the list. The short exit level for Tata Steel is placed at 702.70.

Except SAIL and Suzlon, all other counters in the top-10 list are in uptrend. Bull move on Wednesday is likely to terminate SAIL and Suzlon. Buying opportunities are likely to exist in SAIL and Suzlon.

There are no selling opportunities for Wednesday’s trading. The best is likely to be buying in SAIL. This counter is in downtrend. Bull 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.