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K. Premkumar

Bull run was arrested during Monday’s trading activity. However, the sentiment reading of the tradable counters remains bullish. Bear domination on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment is likely to be strengthened with additional counters.

The May month contract opened with a bull gap of around 15 points from its previous close. The May month contract moved within a range of around 66 points. The May month contract closed with a loss of around nine points from its previous close.

The long position in the Nifty May month contract is intact. The long exit and short entry level is placed quite far away from its last traded price. These levels are unlikely to be triggered during Tuesday’s trading activity.

The composition and the ranking of the top-10 list had minor changes. Ranbaxy made its way to top-10 list pushing out TCS. Tata Steel and Infosys interchanged their position. Reliance Energy moved from seventh to fifth position in the list. BHEL and ICICI Bank moved one step lower in the list.

Except NTPC all other counters in the top-10 list are in uptrend. Except Reliance Energy all other uptrend counters are likely to be under threat for Tuesday’s trading. A lone buying opportunity is likely to exist in NTPC. There are ample selling opportunities for Tuesday’s trading. The best is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Tuesday is likely to reverse the existing trend in this counter.

The composition and the ranking of the top-10 list had minor changes. HDFC made its way to top-10 list pushing out Satyam. BHEL and Reliance Capital interchanged their position. SAIL and Suzlon interchanged their position.

Except Suzlon and Tata Steel, all other counters are in uptrend in the top-10 list. Except Reliance Energy, all other uptrend counters are likely to be under threat for Tuesday’s trading. There are no buying opportunities for Tuesday’s trading. There are ample selling opportunities for Tuesday’s trading. The best is likely to be selling in Reliance Industries. This counter is in uptrend. Bear 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.

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