The Hindu Business Line : Bull domination

Monday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters changed to bullish. Bear domination on Tuesday 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 April month contract opened with a bull gap of around 31 points from its previous close. The April month contract moved within a range of around 158 points.

The April month contract closed with a gain of around 122 points from its previous close.

Bull move during the day reversed the short position in the Nifty April month contract. 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 list had no changes. However, the ranking of the top-10 list had minor changes. Infosys and Hindalco interchanged their position.

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Except Reliance Capital, Reliance Energy and BHEL, all other counters in the top-10 list are in uptrend. The uptrend counter Infosys and NTPC are likely to be under threat for Tuesday’s trading. On the other hand, bull move on Tuesday is likely to terminate Reliance Capital.

A lone buying opportunity is likely to exist in Reliance Capital. Selling opportunities are likely to exist in Infosys and NTPC. The best is likely to be selling in NTPC. This counter 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 list had no changes. There are four uptrend and five downtrend counters in the top-10 list.

The uptrend counters Reliance Energy and Infosys are likely to be under threat for Tuesday’s trading. On the other hand, bull move on Tuesday is likely to terminate all the downtrend counters except BHEL. Buying opportunities are likely to exist in Reliance Capital, ICICI Bank, SAIL, HDFC and Tata Steel. Selling opportunities are likely to exist in Reliance Energy and Infosys. The best is likely to be buying in ICICI Bank. This counter is in downtrend. Bull move on Tuesday 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.

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