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 April contract opened with a bear gap of around 78 points from its previous close. However, bears could not sustain their initial momentum and gave way to bull domination.

The April contract moved within a range of around 262 points and closed with a gain of around 144 points from its previous close.

Initial bear move reversed the long position in the Nifty April contract. However, bull move during the later part of the day terminated the short position. The long entry level is placed quite nearer to its last traded price.

Bull move during Wednesday is likely to initiate a fresh uptrend in the Nifty April contract.

STOCK FUTURES

The composition and the ranking of the top-10 list had minor changes. ONGC made its way to top-10 list pushing out Hindalco. ICICI Bank and Tata Steel interchanged their position.

Infosys moved from eighth to sixth position in the list. SBI and BHEL moved one step lower in the list.

Except Reliance Energy and ONGC all other counters in the top-10 list are in uptrend. The uptrend counter Tata Steel is likely to be under threat for Wednesday’s trading. Buying opportunities are likely to exist in Reliance Energy and ONGC.

A lone selling opportunity is likely to exist in Tata Steel. The best is likely to be buying in Reliance Energy. This counter is in sideways mode. Bull move on Wednesday 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. Reliance Energy and BHEL interchanged their position.

Infosys moved from ninth to sixth position in the list. SAIL, Suzlon and HDFC moved one step lower in the list.

Except SAIL and HDFC all other counters are in uptrend in the top-10 list. The uptrend counters BHEL, Suzlon and Tata Steel are likely to be under threat for Wednesday’s trading.

On the other hand, bull move on Wednesday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in SAIL and HDFC.

Selling opportunities are likely to exist in BHEL, Suzlon and Tata Steel. The best is likely to be buying in HDFC.

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.