The Hindu Business Line : Bull domination

BULLS were in control of Tuesday's trading activity. They gained substantially from the day's trading. The sentiment reading of the tradable counters stands bullish.

Bear domination on Wednesday is likely to turn the sentiment reading to bearish. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.

Click here for table

Nifty Futures Recommendation: The near month October contract remained indecisive during most part of the day. Bulls came strongly during the close of day's trading to gain considerably.

The October contract moved within a band of 30 points registering an intra-day low of 1788.55. It closed higher with a gain of over 31 points.

Bull domination during the day led to the initiation of the uptrend in the October contract.

In the normal course of trading on Wednesday, the initiated long position is likely to continue.

The exit and bearish trigger levels for the October contract are placed slightly away from its current level.

Stock Futures Recommendation: The composition of the top-10 tradable list remains unchanged. The ranking of the list had few changes.

Satyam moved to the fourth position followed by ONGC and Infosys.

Bear move on Wednesday could be a threat to most of the uptrend counters in the tradable list.

On the contrary, the lone downtrend counter-State Bank is likely to be terminated. Bulls are likely to have opportunity in five counters.

Selling opportunities are likely to exist in eight counters. Buying in Maruti is likely to be the best for Wednesday's trading.

Bull pressure on Wednesday is likely to trigger the uptrend in Maruti.

Cash Segment: There were no new entries or exits to the top-10 tradable list.

The ranking of the list underwent few changes. Maruti moved to the top slot and Tata Steel moved to the third position.

Further bull pressure on Wednesday is likely to terminate the downtrend in Infosys and State Bank.

Bear domination on Wednesday could be a threat to the prevailing uptrend counters in the list.

Buying opportunities are likely to exist in five counters. Selling opportunities are likely to exist in six counters.

Buying in Maruti is likely to be the best bet for Wednesday's trading. Bull move on Wednesday is likely to initiate a fresh uptrend in Maruti.

(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.)