Back Bulls prevail
K. Premkumar
BULLS were in command of Tuesday's trading activity. The day's market action resulted in reducing the bear count by a considerable margin.
The market sentiment reading of the tradable counters stands mildly bearish. Bull move on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be strengthened.
Nifty futures recommendation: The February month contract opened with a bear gap of three points and was restricted from making any further losses. It moved within a band of 31 points registering an intra-day high of 2,067.80. The contract closed higher with a gain of 25 points over Monday's close.
Bulls were successful to the extent of terminating the downtrend in the February contract. The short trade exited with a loss of 15 points. Bullish trigger level for the February contract is placed within a point from its last traded value. Bull pressure on Wednesday is likely to initiate a fresh uptrend in the February contract.
Stock futures recommendation: There were no new entries in the top-10 tradable list. The ranking had few changes. Tata Motors moved to the fourth position followed by Reliance and Infosys.
Bull domination on Wednesday is likely to terminate most of the downtrend counters in the list. On the other hand, the lone uptrend counter, State Bank, is likely to be under threat. Buying opportunities are likely in all the counters. Selling opportunities are likely in four counters. For Wednesday, the best bet is likely to be buying in Tata Steel. This counter is in the sideways mode. Buy level for this counter is placed quite closer to its current level. Bull move on Wednesday is likely to trigger the uptrend in Tata Steel.
Cash segment: The composition of the top-10 active counters had few changes. Bharti Tele and ING Vysya gained entry with the exit of ACC and ITC. State Bank moved to the top slot and Reliance moved to the sixth position. The downtrend in ACC is likely to be terminated at 364.55.
Except for the downtrend in Tata Tele, all the other counters in the list are likely to be under threat. Bulls are likely to have an opportunity in six counters. Selling opportunities are likely in three counters. Buying in Maruti is likely to be the best bet for Wednesday's trading. Bullish trigger level for this counter is placed very close to its last traded price. Bull pressure on Wednesday is likely to initiate a fresh uptrend in Maruti.
(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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