The Hindu Business Line : Bulls prevail

Bulls prevailed over Monday’s trading activity. The sentiment reading of the tradable counters continues to remain 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

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The April month contract opened with a bull gap of around 44 points from its previous close. The April month contract moved within a range of around 49 points. The April month contract closed with a gain of around 88 points from its previous close.

The long position in the Nifty April month contract is intact. 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. Reliance Industries and Reliance Capital interchanged their position. Tata Steel and Reliance Energy interchanged their position. The long exit level for ONGC is placed at 1019.95.

Except SBI and BHEL all other counters in the top-10 list are in uptrend. The uptrend counters Reliance Energy and NTPC are likely to be under threat for Tuesday’s trading. On the other hand, bull move on Tuesday is likely to terminate BHEL. Buying opportunities are likely to exist in BHEL and SBI. Selling opportunities are likely to exist in Reliance Energy and NTPC. The best is likely to be buying in SBI. This counter is in sideways mode. Bull move on Tuesday is likely to initiate a fresh uptrend in this counter.

Cash Segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Infosys and ICICI Bank interchanged their position in the list.

Except BHEL all other counters are in uptrend in the top-10 list. The uptrend counters Suzlon and HDFC are likely to be under threat for Tuesday’s trading. On the other hand, bull move on Tuesday is likely to terminate BHEL. A lone buying opportunity is likely to exist in BHEL. Selling opportunities are likely to exist in Suzlon and HDFC. The best is likely to be selling in HDFC. This counter is in uptrend. Bear 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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