THE bulls extended further pressure over Monday's trading activity. The sentiment reading of the tradable counters remains 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.
Nifty futures recommendation: The near month September contract opened a point above the previous close and further moved by another 23 points. During the wee hours of the day's trading, bears made a smart recovery and wiped out most of their losses.
The September contract moved within a band of 25 points. It closed with a gain of around 10 points with respect to Friday's close.
The day's move had no impact on the recommended level. The exit and bearish trigger levels for the September contract are placed at the same level. These levels are still placed far away and are unlikely to be triggered on Tuesday.
Stock futures recommendation: The composition as well as the ranking of the top-10 active counters list remains unchanged. VSNL, Tata Steel and Reliance were the top three traded counters in this segment.
Bear domination on Tuesday is likely to terminate most of the uptrend counters in the list. The lone downtrend counter Satyam is likely to be under threat. Buying opportunities are likely to exist in two counters. Selling opportunities are likely to exist in four counters.
Buying in ICICI Bank is likely to be the best for Tuesday's trading. This counter is in the sideways mode. Buy level for this counter is placed within a rupee from the last traded price. Bull pressure on Tuesday is likely to trigger the uptrend in ICICI Bank.
Cash segment: There were no new entries or exits to the top-10 tradable counters. The ranking of the list too remains undisturbed. Bears were successful in triggering the downtrend in the recommended counter i-flex.
For Tuesday, most of the counters in the list are likely to be under threat. Bulls are unlikely to have any opportunity for Tuesday's trading. Selling opportunities are likely to exist in four counters.
The best for Tuesday's trading is likely to be selling in Reliance. This counter is in the uptrend. The exit and bearish trigger levels are placed quite closer to the current level. Bear move on Tuesday has the potential to reverse the prevailing uptrend in Reliance.
(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.