The Hindu Business Line : Bulls prevail

Bulls prevailed over Monday's trading activity. However, the sentiment reading of the tradable counters remains bearish. Bull move on Tuesday is likely to change the sentiment reading. On the other hand, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

Nifty futures

The September month contract opened with a bull gap of around 6 points from its previous close. The September contract moved within a range of around 23 points making an intra-day high of 3,508.80. It closed with a gain of around 10 points from its previous close.

The short position in the September contract exited and entered long. The long exit and long entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during trading on Tuesday.

Stock futures

The composition and the ranking of the top-10 tradable counters had no changes. The top-3 tradable counters in this segment were State Bank of India, Century Textiles and Sterlite.

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There are five uptrend counters and five downtrend counters in the top-10 tradable list. All the counters are likely to be under threat for Tuesday's trading. There exist five opportunities in both of the counters in the top-10 tradable list.

The best is likely to be selling in Reliance. This counter is in uptrend mode. Bear move on Tuesday is likely to trigger a sell level in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had no changes. There are three downtrend counters and seven uptrend counters in the top-10 tradable list. Both the uptrend and downtrend counters are likely to be under threat for Tuesday's trading. There are three buying opportunities likely to exist in Maruti, Infosys and Tata Steel.

The best is likely to be buying in Infosys. This counter is in downtrend mode. 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.

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