The Hindu Business Line : Bull domination

Monday’s trading activity witnessed a bull domination. 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 strengthened.

NIFTY FUTURES

The August month contract opened with a bull gap of around 34 points from its previous close. The contract moved within a range of around 96 points. It closed with a gain of around 121 points from its previous close.

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The long position in the August Nifty Futures contract is undisturbed. The long exit and short entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Tuesday’s trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. SBI and Reliance Capital interchanged their positions. IDBI moved from sixth to fourth position in the list. Reliance Energy and Tata Steel moved one step lower in the list.

All the counters in the list are in uptrend. In the uptrend counters Reliance Capital, Reliance Industries, Reliance Energy, Tata Steel, Century Textiles and ACC are under threat for Tuesday’s trading. There are no buying opportunities for Tuesday’s trading. Selling opportunities are likely to exist in Reliance Capital, Reliance Industries, Reliance Energy, Tata Steel, Century Textiles and ACC. The best among the above is likely to be selling in Century Textiles. This c ounter is in uptrend. Bear 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 minor changes. Suzlon made its way to top-10 list pushing out Satyam. Suzlon occupied last position in the list. ICICIBANK moved from seventh to third position in the list. Reliance Capital moved one step lower in the list. Reliance Energy moved from fourth to seventh position in the list.

All the counters in the list are in uptrend. In the uptrend counters Reliance Industries, Reliance Capital, Tata Steel, Infosys, Reliance Energy and Suzlon are under threat for Tuesday’s trading. There are no buying opportunities for Tuesday’s trading. Selling opportunities are likely to exist in Reliance Industries, Reliance Capital, Tata Steel, Infosys, Reliance Energy and Suzlon. The best among the above is likely to be selling in Infosys. This counter is in uptrend. Bear move on Tuesday is likely to reverse the prevailing 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.