The Hindu Business Line : Bulls in control

BULLS were in control of Tuesday's trading activity. However, this had little impact on the top-10 tradable counters. The sentiment reading of the tradable counters continues to remain bullish.

Bear domination on Wednesday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to continue with added strength.

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Nifty futures recommendation: The June month contract initially lost around four points, thereafter, bulls took charge of the day's proceedings. It moved within a band of 25 points. June contract closed higher with a gain of 19 points over previous close.

The long position in the June contract remains undisturbed. The exit and bearish trigger level for the June contract are placed around the same level. Bear domination on Wednesday has the potential to reverse the prevailing uptrend in the June contract.

Stock futures recommendation: The composition of the top-10 tradable list underwent a change. NTPC gained entry with the exit of PNB. For those holding long positions in Bank of Baroda, Maruti and PNB may do so with the stop loss placed at 197.45, 452.45 and 389.15 respectively.

None of the counters in the list is in the downtrend. Bear pressure on Wednesday is likely to terminate most of the prevailing uptrend counters in the list. Selling opportunities are likely to exist in eight counters. Buying opportunities are likely to exist in five counters.

For Wednesday, the best is likely to be the selling in Tata Motors. Bearish trigger level for this counter is placed within three rupees from the last traded price. Bear move on Wednesday is likely to trigger the downtrend in Tata Motors.

Cash segment: There were no new entries or exits to the top-10 active counters list. The ranking of the list had a minor change. Satyam and State Bank interchanged their positions.

Bull move on Wednesday could be a threat to the downtrend in SAIL and Tata Steel. On the contrary, the uptrend in ONGC, Satyam and State Bank is likely to be terminated. Bears are likely to have opportunity in as much as eight counters. Buying opportunities are likely to exist in five counters.

Selling in Ranbaxy is likely to be the best bet for Wednesday's trading. Bearish trigger level for this counter is placed closer to the current level. Bear pressure on Wednesday is likely to initiate a fresh downtrend in Ranbaxy.

(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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