The Hindu Business Line : Bull domination

Bulls dominated over Monday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear move on Tuesday has the potential 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 May month contract opened with a bull gap of around 34 points from its previous close. It moved within a range of around 35 points making an intra-day high of 4272.95 and closed with a gain of around 37 points from its previous close.

The long position in the May month contract is intact. The long exit and short entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Tuesday's trading activity.

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Stock Futures: The composition and ranking of the top-10 tradable list has minor changes. ONGC made its way into the top-10 list pushing out ACC and occupied last position. SBI moved from first to third position in the list. The top-3 tradable counters in this segment were Reliance Capital, Tata Steel and Reliance.

Except Bajaj Auto all other counters in the top-10 tradable list are in uptrend. There are four uptrend counters in the list under threat for Tuesday. There are four selling opportunities likely to exist in the list. The best among the above is likely to be selling in Bank of India. This counter is in uptrend. Bear move on Tuesday is likely to reverse the trend in this counter.

Cash Segment: The composition and ranking of the top-10 tradable counters has minor changes. SAIL made its way into the top-10 list pushing out ACC. Tata Steel and Bajaj Auto interchanged their positions. IDBI and Satyam also interchanged their position in the list.

There are six uptrend and four downtrend counters in the top-10 tradable list. In the four uptrend counters, ICICI and IDBI are under threat for Tuesday. There are two selling and two buying opportunities likely to exist in the list. The best candidate is likely to be selling in IDBI. This counter is in uptrend. Bear move on Tuesday is likely to reverse the trend 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.