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Uptrend strengthened

K. Premkumar

BOTH the indices continued their uptrend on Monday. Market sentiment also remained bullish. The uptrend in both the indices is likely to continue on Tuesday. Sentiment may also stay bullish irrespective of bull or bear domination.

Index watch: The S&P CNX Nifty opened with a bear gap of about five points on Monday. Throughout the day, the bulls dominated the market. The index gained about 25 points intra-day. It closed around the day's high, netting a gain of about 19 points compa red to the last traded value.

The neutral and bearish levels are placed about 35 and 66 points away from the last traded value. A strong bear move on Tuesday is likely to neutralise the current uptrend, which may continue otherwise.

The Sensex opened with a strong bull gap on Tuesday. During the initial hours, the Sensex gained about seven points to mark the day's high. Later on, the bears brought the index down by about 75 points to mark the day's low. Towards the end, the Sensex p icked up once again to close around the day's open, a gain of about 98 points compared to the previous last traded value.

The neutral and bearish levels of the Sensex are placed far away from the day's last traded value. Hence, the current uptrend is likely to continue on Tuesday.

Scrip watch: The top-20 list remained unchanged on Monday. The Wipro counter replaced Reliance in the top-10 list. L&T progressed to the 13th position.

Market sentiment continued to be bullish on Monday. Irrespective of bull or bear domination on Tuesday, sentiment may remain the same. The bullish sentiment value may mildly decrease in case of bear domination.

In case of a bear attack, two counters are likely to be under threat _ Digital and SBI. In case of a bull attack, the counters of Himachal, Zee and Silverline may be threatened.

Buying opportunities for the bulls is unlikely to exist on Tuesday. Selling opportunities for the bears is likely to exist in three counters _ Digital, Hindustan Lever and SBI. The best among them is SBI, currently in the uptrend. The last traded value o f this counter is very close to its sell level. So in case of bear domination on Tuesday, this counter is likely to trigger the sell level.

(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 Chennai-based technical analyst and fund management consultant.