K. Premkumar

Tuesday's trading activity witnessed volatile movement. The sentiment reading of the tradable counters turned bearish. Bull move on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be strengthened further.

Nifty futures recommendation

The August month contract opened with a bear gap of around 13 points. The August month contract moved with in a range of around 55 points making an intra-day high of 3,082. It closed with a gain of around 20 points from its previous close.

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The long position in the August contract exited and entered a short position. Both the short exit and long entry levels are placed quite nearer to Tuesday's last traded price. These levels are likely to be triggered during Wednesday's trading.

Futures recommendation

The composition and ranking of the top-10 tradable list had minor changes. REL, Nalco, ICICI and Hindlever went out of the list, giving way to Infosys, Tisco, BHEL and ACC. The top-3 tradable counters in this segment were Reliance, SBIN and Tisco.

Except Ranbaxy, which is in the sideways mode, all other counters in the top-10 tradable list are likely to be terminated during Wednesday's trading. There are five opportunities each on both the sides of Wednesday's trading. The best is likely to be buying in ACC, which is in downtrend. Bull move on Wednesday is likely to trigger the uptrend in this counter.

Cash segment

The composition and ranking of the top-10 tradable list had minor changes. TCS moved out of the list, giving way to ONGC. VSNL, Tata Motors and SAIL moved up to seventh, eighth and ninth positions respectively.

All the uptrend and downtrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. There are two opportunities on the bull side and ample opportunities on the bear side for Wednesday's trading. The best is likely to be buying in Maruti. 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.

(This article was published in the Business Line print edition dated August 2, 2006)
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