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K. Premkumar

TUESDAY'S trading activity remained indecisive for the second successive trading day. Neither the bulls nor the bears could gain much from the day's trading. The sentiment reading of the tradable counters stands mildly bearish.

Bull move on Wednesday is likely to change the sentiment reading to bullish. On the other hand, the prevailing bearish sentiment is likely to be further strengthened.

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Nifty futures recommendation: The near-month January contract gained around ten points. Bulls failed to capitalise on it as they yielded to bear pressure. The January contract moved within a band of 33 points registering an intra-day low of 1920.00. It closed with a loss of 15 points with respect to Monday's close.

The short position in the January contract remains undisturbed. The exit and bullish trigger levels for the January contract remains unchanged. These levels are still placed far away and unlikely to be triggered on Wednesday.

Stock futures recommendation: The composition of the top-10 active counters and their ranking remains unchanged. Tata Steel, ACC and Reliance were the top three traded counters in this segment.

Bull move on Wednesday is likely to terminate the downtrend in ONGC, Reliance and Tata Motors.

On the other hand, the lone uptrend counter- Infosys is likely to be under threat. For Wednesday, five opportunities are likely to exist on either side of trading. Selling in Maruti is likely to be the best for Wednesday's trading. This counter is in the sideways mode. Bearish trigger level for this counter is placed very close to its last traded value. Bear pressure on Wednesday is likely to initiate the downtrend in Maruti.

Cash segment: The composition of the top-10 tradable list underwent a change. ACC gained entry with the exit of ONGC. The ranking of the list remains the same with no major changes. The exit level for the downtrend in ONGC and Zee Tele are placed at 795.05 and 163.70 respectively.

Except for the downtrend in SAIL, all the other counters in the list are likely to be under threat. Bears are likely to have opportunity in Infosys, Reliance and State Bank. Buying opportunities are likely to exist in Reliance and State Bank. The best among the above is likely to be the selling in Infosys. The exit and bearish trigger levels for this counter is placed quite closer to its current level. Bear move on Wednesday has the potential to reverse the prevailing uptrend in Infosys.

(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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