The Hindu Business Line : Bull domination

Bulls dominated over Friday’s trading activity. The sentiment reading of the tradable counters continues to remain bullish. Bear domination on Tuesday 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

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The April contract opened with a bull gap of around 38 points from its previous close and moved within a range of around 98 points. The April contract closed with a gain of around 51 points from its previous close. The long position in the Nifty April 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.

STOCK FUTURES

The composition and the ranking of the top-10 list had no changes. There are five uptrend and four downtrend counters in the top-10 list.

The uptrend counters Reliance Energy and Hindalco are likely to be under threat for Tuesday’s trading.

On the other hand, bull move on Tuesday is likely to terminate SBI, BHEL and Infosys. Buying opportunities are likely to exist in SBI, BHEL, Infosys and NTPC. Selling opportunities are likely to exist in Reliance Energy, NTPC and Hindalco. The best is likely to be buying in NTPC.

This counter is in sideways mode. Bull move on Tuesday is likely to initiate a fresh uptrend 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.

Except ICICI Bank, Suzlon, HDFC and Infosys all other counters are in uptrend in the top-10 list.

The uptrend counter BHEL is likely to be under threat for Tuesday’s trading. On the other hand, bull move on Tuesday is likely to terminate Suzlon and HDFC.

Buying opportunities are likely to exist in Suzlon and HDFC. A lone selling opportunity is likely to exist in BHEL.

The best is likely to be buying in Suzlon. This counter is in downtrend. Bull 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.