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 is likely to be strengthened with additional counters.

Nifty Futures

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The May month contract opened with a bull gap of around 19 points from its previous close. The May month contract moved within a range of around 148 points. The May month contract closed with a gain of around 111 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 Wednesday’s trading activity.

Stock Futures

The composition and the ranking of the top-10 list had minor changes. NTPC and Ranbaxy went out from the top 10 tradable list and gave way to Satyam and TCS. Tata Steel moved to sixth position in the top 10 tradable list.

Except Infosys and BHEL, all other counters in the top-10 list are in uptrend. Reliance Industries and ICICI Bank are under threat for Wednesday. There are two selling opportunities in Reliance Industries and ICICI Bank for Wednesday’s trading. Buying opportunities are likely to exist in Infosys and BHEL. The best is likely to be buying in Infosys.

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

Cash segment

The composition and the ranking of the top-10 list had minor changes. Satyam made its way to the top-10 list pushing out Tata Steel. Suzlon moved one step lower in the top-10 tradable list.

There are five uptrend counters Reliance Capital, Reliance Energy, SAIL, Satyam and Suzlon in the top-10 tradable list.

Two down trend counters ICICI Bank and Suzlon are likely to be under threat for Tuesday’s trading.

On the other hand, uptrend in SAIL is likely to be terminated. There are five buying opportunities in Reliance Industries, BHEL, Infosys, ICICI Bank and Suzlon and two selling opportunities in BHEL and SAIL for Wednesday’s trading.

The best is likely to be buying in Reliance Industries. This counter is in sideways mode. Bull move on Wednesday is likely to initiate a fresh up 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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