The Hindu Business Line : Bulls prevail

Bull domination on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment reading is likely to be strengthened with additional counters.

NIFTY FUTURES

The March contract opened with a bear gap of around 84 points from its previous close. However, bears were not able to sustain their initial move and gave way to bulls. The March contract moved within a range of around 172 points and closed with a gain of around 62 points from its previous close.

The downtrend in the Nifty month contract is intact. The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Wednesday’s trading.

STOCK FUTURES

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

SBI moved from fourth to sixth position in the list. ICICI Bank and Tata Steel moved one step higher in the list.

Except Reliance Industries, Tata Steel, NTPC and BHEL all other counters in the top-10 list are in downtrend. The uptrend counter Tata Steel is likely to be under threat for Wednesday trading. On the other hand, bull move on Wednesday is likely to terminate SBI, Hindalco and Infosys.

Buying opportunities are likely to exist in SBI, Hindalco and Infosys. A lone selling opportunity is likely to be exist in Tata Steel. The best among the above is likely to be buying in Infosys. This counter is in downtrend. Bull move on Wednesday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 list had minor changes. Satyam made its way to top-10 list pushing out Suzlon. Reliance Energy and Reliance Industries interchanged their positions. SBI, HDFC and Tata Steel moved one step higher in the list.

Except SAIL and Tata Steel all other counters in the top-10 list are in downtrend. All the uptrend counters are likely to be under threat for Wednesday’s trading. On the other hand, bull move on Wednesday is likely to terminate Reliance Industries, BHEL, SBI and HDFC. Buying opportunities are likely to exist in Reliance Industries, BHEL, SBI and HDFC.

Selling opportunities are likely to SAIL and Tata Steel. The best among the above is likely to be buying in BHEL. This counter is in downtrend. Bull move on Wednesday is likely to reverse the existing 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.