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K. Premkumar

BEARS dominated the initial hours of Tuesday's trading. During the close, bulls made a smart recovery and wiped out most of their day's losses. The market sentiment reading of the tradable counters stands mildly in favour of the bears. Bull domination is likely to change the sentiment in favour of the bulls. On the contrary, the prevailing bearish sentiment is likely to continue with added strength.

Nifty futures recommendation: The April contract moved within a close band of 8 points. However, this was enough to initiate the downtrend in the April contract. The April contract closed with a marginal gain of 2 points with respect to previous close. The exit level for the downtrend in the April contract is in the danger zone. It is placed just 2 points away from its last traded value. Bullish trigger level for the April contract remains unchanged. Bull domination on Wednesday has the potential to reverse the prevailing downtrend.

Stock futures recommendation: The top-10 tradable counters underwent a change. State Bank gained entry with the exit of Reliance Petro. However, the ranking of the list remains unchanged.

Bull domination on Wednesday could be a threat to all the downtrend counters in the list. The lone uptrend counter — State Bank- is also likely to be under threat. For Wednesday, traders are left with ample opportunities. Selling opportunities are likely to exist in Hindustan Petro, MTNL, Reliance and Tata Engg. Buying opportunities are likely to exist in BPCL, Digital, Hindustan Petro, Infosys, Reliance Industries, Satyam Computer and Tata Engg. Selling in MTNL is likely to be the best for Wednesday's trading. Its bearish trigger level is placed quite closer to its last traded price. Bear move on Wednesday is likely to trigger this level.

Cash segment: The composition of the top-10 tradable list had a change. ONGC gained entry with the exit of Reliance Industries. The ranking of the list remains undisturbed.

Except for Aftek Infosys all the other downtrend counters are likely to be under threat. The prevailing uptrend counters in the list are likely to be safe. For Wednesday, buying opportunities are likely to exist in Infosys, Polaris Soft and Satyam Computer. A lone selling opportunity is likely to exist in Wipro. The best among them is likely to be the buying in Polaris Soft. The counter is in the downtrend. Its exit and bullish trigger levels are placed closer to its current level. Bull domination on Wednesday is likely to reverse the prevailing downtrend in the 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 Chennai-based technical analyst and fund management consultant.

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