The Hindu Business Line : Bull domination

Tuesday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters changed to 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 with additional counters.

Nifty Futures

The April month contract opened with a bear gap of around 13 points from its previous close. The April month contract moved within a range of around 107 points. The April month contract closed with a loss of around 74 points from its previous close.

The long position in the Nifty April month contract is intact. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Wednesday’s trading.

Stock Futures

The composition and the ranking of the top-10 list had no changes. Except Reliance Industries, Tata Steel, ICICI Bank and SBI, 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 is likely to terminate Reliance Capital, Infosys and Hindalco. Buying opportunities are likely to exist in Reliance Capital, Infosys and Hindalco. Selling opportunities are likely to exist in Reliance Industries, Tata Steel, ICICI Bank and SBI. The best is likely to be selling in Reliance Industries. This counter is in uptrend. Bear 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 top-10 list had minor changes. BHEL and Reliance Energy interchanged their position.

There are five uptrend and four downtrend counters in the top-10 list. The uptrend counters Reliance Industries, Reliance Energy and Suzlon are likely to be under threat for Wednesday’s trading. On the other hand, bull move on Wednesday is likely to terminate HDFC and Infosys. Buying opportunities are likely to exist in HDFC and Infosys. Selling opportunities are likely to exist in Reliance Industries, Reliance Energy and Suzlon and Tata Steel. The best is likely to be selling in Tata Steel. This counter is in sideways mode. Bear move on Wednesday is likely to initiate a fresh downtrend 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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