Back Bull-run arrested
K. Premkumar
BEARS gained control of Tuesday's trading activity. The day's market action had less impact on the tradable counters. The sentiment reading of the tradable counters stands mildly bullish. Bear domination on Wednesday has the potential to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to continue with added strength.
Nifty futures recommendation: The near month March contract opened with a bear gap of 36 points and went further down by another seven points. Thereafter, bulls managed to make a partial recovery. The March contract moved within a band of 40 points registering an intra-day high of 2109.90. It closed with a loss of 32 points with respect to previous close.
The uptrend in the March contract remains intact. However, this is likely to be under threat for Wednesday. Bearish trigger level for the March contract is still placed far away and this is unlikely to be triggered.
Stock futures recommendation: The composition as well as the ranking of the top-10 active counters list remains unchanged. State Bank, Tata Steel and Reliance Industries were the top three traded counters in this segment.
For Wednesday, most of the counters in the list are likely to be under threat. Selling opportunities are likely to exist in six counters. Buying opportunities are likely to exist in two counters. The best bet for Wednesday's trading is likely to be the selling in Satyam. This counter is in the uptrend. The exit and sell levels for this counter is placed closer to the current level. Bear pressure on Wednesday is likely to reverse the prevailing uptrend in Satyam.
Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had few changes. Reliance moved to the second position and Tata Steel moved to the fourth position.
Bear pressure on Wednesday is likely to terminate the prevailing uptrend counters in the list. The prevailing downtrend counters in the list are likely to be safe. Bulls are unlikely to have any opportunity for Wednesday's trading. Selling opportunities are likely to exist in four counters. Bearish trigger level for Tata Motors is placed quite closer to the last traded price. Bear move on Wednesday has the potential to trigger the downtrend in Tata Motors.
(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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