THE sentiment reading of the tradable counters remains bullish. Bear domination on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the bullish sentiment is likely to be further strengthened.
Nifty futures recommendation: The December month contract opened with a bull gap of around 7 points.
The December month contract moved within a range of around 30 points making an intra-day low of 2,817.00. It closed with a gain of around 31 points from its previous close.
The December month contract entered a fresh long position in the morning session. The exit and sell levels are placed quite far away from its last traded price.
Bear move on Tuesday is unlikely to trigger these levels.
Stock futures recommendation: The composition and the ranking of the top-10 tradable list had no changes. The top three tradable counters in this segment were State Bank, Reliance Capital and Tata Steel.
All the up trend counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. On the other hand, a lone downtrend counter, Ranbaxy is likely to be terminated. Buying opportunity may exist in Rel Energy.
Selling opportunity may exist in Reliance and Rel Energy. The best for Tuesday's trading is likely to be selling in Reliance. This counter is on the uptrend. Bear move on Tuesday is likely to reverse the existing trend in this counter.
Cash segment: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. VSNL moved up to the third position and Satyam moved down to fourth position. The exit level for Tata Steel is placed at 368.95.
All the counters in the top-10 tradable list are likely to be terminated during Tuesday's trading. There are no downtrend counters in the list. Reliance is the lone counter having opportunity on both the sides. The best is likely to be buying in Reliance. This counter is in side ways mode. Bull pressure on Tuesday is likely to initiate a fresh uptrend 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.