The Hindu Business Line : Bull domination

Tuesday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters changed to bullish. Bear move on Wednesday is likely to change the sentiment reading in their favour.

On the contrary, the current bullish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The October month contract opened with a bear gap of around 32 points from its previous close.

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The October month contract moved within a range of around 339 points. The October month contract closed with a gain of around 260 points from its previous close.

The long position in the October Month contract is undisturbed.

The long exit and short entry levels are placed quite faraway from its last traded price. These levels are unlikely to be triggered during Wednesday’s trading.

STOCK FUTURES

The composition and the ranking of the top-10 list had minor changes. Infosys made its way to top-10 list pushing out Hindalco. Infosys occupied last position in the list. IDBI moved from ninth to seventh position in the list.

Tata power moved one step higher in the list. The short exit level for Hindalco is placed at Rs 168.5.

Except Tata Steel and IDBI all other counters in the top-10 tradable list are in uptrend. Bull domination on Wednesday is likely to terminate Tata Steel. A lone buying opportunity is likely to exist in Tata Steel. There are no selling opportunities for Wednesday’s trading.

The best is likely to be buying in Tata Steel. This counter is in downtrend. Bull move on Wednesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Industries and Reliance Capital interchanged their positions.

Except ICICI Bank, Tata Steel, IDBI and SAIL all other counters in the top-10 tradable list are in uptrend. Bull domination on Wednesday is likely to terminate Tata Steel and SAIL. Buying opportunities are likely to exist in ICICI Bank, Tata Steel and SAIL.

There are no selling opportunities for Wednesday’s trading. The best is likely to be buying in ICICI Bank. This counter is in sideways mode. Bull pressure on Wednesday is likely to initiate a fresh 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.