K. Premkumar

MONDAY'S market action resulted in changing the sentiment reading of the tradable counters into bullish. Bear domination on Tuesday is likely to neutralise the sentiment reading. On the other hand, the bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The October month contract opened with a bull gap of 7 points and went further by 30 points making an intra-day high of 2629.95. Bears were unable to make any impact on the day's trading. The October month contract moved within a range of 33 points. It closed higher with a gain of 34 points from Friday's close.

The October month contract remains in sideways mode for the second day as market action on Monday had no impact on the recommended levels. The bullish trigger level is placed closer to its last traded price. Bull move on Tuesday has the potential to initiate a fresh uptrend in the October month contract.

Stock futures recommendation: There are no changes in the composition as well as in the ranking of the top-10 tradable list. The top three traded counters in this segment were Reliance, IPCL and Satyam Computer.

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For Tuesday's trading all the positions in the list are likely to be under threat. Buying opportunities are likely to exist in Reliance, ONGC and Hindustan Lever. There is only one selling opportunity for Tuesday's trading. The best among the above is likely to exist on the buy side of Hind lever. This counter is in sideways mode. Bull pressure on Tuesday is likely to trigger a fresh uptrend in this counter.

Cash segment: The composition of the top 10 tradable list remained unchanged. The ranking of the list had minor changes. McDowell and Reliance Industries interchanged their position. The long exit level for Satyam Computer is placed at 559.80.

Bear move on Tuesday is likely to terminate all the uptrend counters in the list. However, bull pressure on Tuesday is likely to terminate the downtrend in Reliance Industries. There are five buying opportunities and one selling opportunity for Tuesday's trading.

The best bet for Tuesday's trading is buying in SRF. This counter is in the sideways mode.

Bull move on Tuesday is likely to trigger the long entry level for 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 October 4, 2005)
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