BULLS maintained their pressure over Monday's trading activity. The sentiment reading of tradable counters stands bullish. Bear domination on Tuesday is likely to reduce the bull count by a considerable margin, thereby resulting in a change in the sentiment reading. On the other hand, the prevailing bullish sentiment is likely to be further strengthened.
Nifty futures recommendation
During the initial hours of the day's trading, the near-month June contract gained around 26 points. Later on, bears made a strong comeback and wiped out their losses. The June contract moved within a band of 30 points. It closed just a point above Saturday's close.
The uptrend in the June contract remains intact. However, this is likely to be under threat for Tuesday. The bearish trigger level for the June contract is still placed far away and this is unlikely to be triggered on Tuesday.
Stock futures recommendation The composition of the top-10 tradable counters had two changes. ACC and PNB gained entry with the exit of Maruti and NTPC. The exit levels for the uptrend in Bank of Baroda, Maruti and NTPC are placed at 193.75, 451.95 and 83.65, respectively.
None of the counters in the list is in the downtrend. For Tuesday, most of the prevailing uptrend counters in the list are likely to be under threat. Bulls are likely to have an opportunity in five counters. Selling opportunities are likely to exist in six counters. Buying in ACC is likely to be the best bet for Tuesday's trading. The buy level for this counter is placed quite close to the current level. Bull pressure on Tuesday is likely to initiate a fresh uptrend in ACC.
Cash Segment There were no new entries or exits to the top-10 active counters' list. There were a few changes in the ranking. Reliance moved to the second position and Maruti moved to the ninth position.
Bear pressure on Tuesday is likely to terminate most of the uptrend counters in the list. On the contrary, the lone downtrend counter SAIL, is likely to be under threat. Selling opportunities are likely to exist in six counters, while buying opportunities are likely to exist in four counters.
For Tuesday, the best bet is likely to be the selling in Tata Motors. The bearish trigger level for this counter is placed close to the last traded price. A bear move on Tuesday is likely to trigger a downtrend in Tata Motors.
(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.