The Hindu Business Line : Bulls prevail

Bulls dominated over Monday's trading activity. The sentiment reading of the tradable counters continues to remain bullish. However, bear domination on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures: The March month contract opened with a bull gap of around 10 points. It moved with in a range of around 32 points making an intraday high of 3,256. March contract closed with a gain of around 40 points from its previous close.

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The long position in the March month contract is intact. The long exit and short entry levels are placed quite far away from its last traded price. In the normal course of trading these levels are unlikely to be triggered during Tuesday.

Stock futures: The composition and the ranking of the top-10 tradable list had minor changes. Bajaj auto went out of the list and gave way to Reliance. State Bank, Satyam and Infosys moved down to sixth, seventh and eighth positions respectively. The top-3 tradable counters in this segment were MTNL, Infosys and IVRCLinfra.

All the existing positions in the top-10 tradable list are likely to be under threat for Tuesday's trading. There are four opportunities on the buy side and ample opportunities on the sell side. The best is likely to be selling in Maruti. This counter is in uptrend. Bear move on Tuesday is likely to reverse the prevailing trend in this counter.

Cash segment: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. State Bank and Tata Steel interchanged their positions.

All the counters in the top-10 tradable list are likely to be terminated during Tuesday's trading. A lone opportunity on the buy side is likely to exist in Titan. On the other hand, there are ample opportunities on the sell side. The best is likely to be selling in Maruti. Bear pressure on Tuesday is likely to trigger the downtrend 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.