Back Bulls march ahead
K.Premkumar
THE sentiment reading of the tradable counters stands strongly bullish with no downtrend counters. Bear domination on Tuesday is likely to reduce the bull count to a bare minimum thereby changing the sentiment reading to bearish. Otherwise, the prevailing bullish sentiment is likely to continue with a slight change in its value.
Nifty futures recommendation: The near month July contract opened two points above its previous close and went further by another 20 points. Later on, bears managed to make a partial recovery. The July contract moved within a band of 28 points registering an intra-day high of 1570.70. It closed with a gain of 12 points with respect to Friday's close.
The long position in the July contract remained intact. The long position is locked-up with a nominal profit of 9 points. In the normal course of trading on Tuesday, the long position is likely to continue. Bearish trigger level for the July contract is placed far away.
Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list in this segment remain unchanged. The top three traded counters in this segment were Tata Steel, Reliance and Tata Motors.
The exit level for the uptrend in Infosys is placed at Rs 1466.50.
Except for M&M, all the other counters in the list are in the uptrend. Bear pressure on Tuesday is likely to terminate most of the uptrend counters in the tradable list. Bulls are unlikely to have any opportunity for Tuesday's trading. Selling opportunities are likely to exist in as much as seven counters.
Selling in Tata Motors is likely to be the best bet for Tuesday's trading. Bearish trigger level for this counter is placed within Rs 2 from its last traded price. Bear move on Tuesday has the potential to initiate a downtrend in this counter.
Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list too remains unchanged.
All the counters in the list are in uptrend. Except for the uptrend in ONGC, all the counters in the list are likely to be under threat. There are no buying opportunities for Tuesday's trading. Selling opportunities are likely to exist in five counters.
Selling in Tata Motors is likely to be the best bet for Tuesday's trading. This counter is in uptrend. Bear move on Tuesday has the potential to trigger the downtrend 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.
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