The Hindu Business Line : Bull domination

Bull dominated over Monday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear move 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 August month contract opened with a bull gap of around 3 points from its previous close. The August contract moved with in a range of around 37 points making an intraday high of 3409.90. It closed with a gain of around 16 points from its previous close.

The long position in the August contract exited and entered short in the morning session. Then the short position was neutralised during the latter part of the day's trading. The long entry level is placed quite nearer and the short entry level is placed quite far away from its last traded price. Bull move on Tuesday is likely to initiate a fresh long position in the August contract.

Stock Futures

The composition and ranking of the top-10 tradable list had minor changes. ONGC gave way to ACC. ACC occupied ninth position. Satyam moved up to sixth position and Bajaj Auto moved down to fifth position. Tata Motors moved up to eighth position and i-fleX moved down to tenth position. The top-3 tradable counters in this segment were Reliance, India Cements and State Bank.

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All the counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. There are each five opportunities on both the sides of trading. The best is likely to be buying in Infosys. This counter is in down trend. Bull move on Tuesday is likely to reverse the existing trend in this counter.

Cash Segment

The composition and the ranking of the top-10 tradable list had no changes. All the counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. There are two buying opportunities and ample selling opportunities for Tuesday's trading. The best is likely to be buying in Infosys. This counter is in down trend. Bull move on Tuesday is likely to trigger the uptrend in this 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 technical analyst and fund management consultant.