Back Range-bound movement
K. Premkumar
TUESDAY'S trading activity witnessed a range bound movement. Neither the bulls nor the bears could gain much from the day's trading. The sentiment reading of the tradable counters continues to remain bullish. Bear domination on Wednesday is likely to reduce the bull count by a considerable margin, thereby, resulting a change in the sentiment reading.
Nifty futures recommendation: The March contract opened around its previous close and lost around six points during the initial hour. Later on, bulls took charge of the day's proceedings. The March contract for the second day moved within a tight band of 19 points. It closed with a gain of 12 points over Monday's close.
The long position in the March contract remains undisturbed. The exit level has been moved closer to the current level. Bear move on Wednesday has the potential to terminate the uptrend. Bearish trigger level for the March contract is still placed far away.
Stock futures recommendation: The top-10 tradable list underwent changes. Andhra Bank and Bank of India gained entry with the exit of Maruti and ONGC.
The exit level for the short position in ACC and Maruti is placed at Rs 374.55 and Rs 474.05 respectively.
The uptrend in Arvind Mill and ONGC is likely to terminate at Rs 128.55 and Rs 869.20 respectively.
Except for Tata Motors, all the other counters in the list are in the uptrend. Bear move on Wednesday is likely to terminate most of the uptrend counters in the list. Selling opportunities are likely to exist in four counters. A lone buying opportunity is likely to exist in Tata Motors. The best is likely to be the selling in Infosys. The exit and bearish trigger level for this counter is placed closer to the last traded value. Bear pressure on Wednesday is likely to trigger these levels.
Cash segment: There were no new entries to the top-10 active counters list. The ranking of the list had some changes. Punjab Bank moved to the top slot and Maruti moved to the fourth position.
For Wednesday, most of the counters in the list are likely to be under threat. Bulls are unlikely to have any opportunity for Wednesday's trading. Selling opportunities are likely to exist in Infosys, SAIL and Satyam. The best among the above is likely to be Infosys. This counter is in the uptrend. The exit and sell levels for this counter is placed quite nearer to the closing price. Bear move on Wednesday has the potential to reverse the prevailing uptrend in Infosys.
(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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