Back Range-bound movement
K. Premkumar
MONDAY'S market action resulted in terminating the uptrend in few tradable counters. However, the sentiment reading of the tradable counters remains bullish. Bear move on Tuesday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.
Nifty futures recommendation: The near month April contract opened four points lower than the previous close and went further down by another four points. Thereafter, bulls took charge of the day's proceedings and wiped out their early losses. The April contract moved within a band of 23 points registering an intra-day high of 1964.00. It closed with a gain of 10 points over Friday's close.
The long position in the April contract remains intact. The exit and bearish trigger levels for the April contract are placed around the same level. In the normal course of trading on Tuesday, these levels are unlikely to be triggered.
Stock futures recommendation: The composition of the top-10 active counters list underwent a change. Wipro gained entry with the exit of ICICI Bank. The ranking of the list had some changes. Infosys moved to the fourth position followed by State Bank and Wipro. The exit level for the long position in ICICI Bank is placed at 384.95.
Bear domination on Tuesday is likely to terminate most of the uptrend counters in the list. On the other hand, the lone downtrend counter-PNB is likely to be under threat. Selling opportunities are likely to exist in seven counters. Buying opportunities are likely to exist in four counters. Selling in State Bank is likely to be the best for Tuesday's trading. This counter is in the uptrend. The exit and bearish trigger levels for this counter are placed quite closer to the current level. Bear move on Tuesday has the potential to reverse the prevailing uptrend in State Bank.
Cash segment: Wipro gained entry to the top-10 tradable list with the exit of ICICI Bank. The ranking of the list underwent few changes. The uptrend in ICICI Bank is likely to terminate at 390.10.
None of the counters in the list are in the downtrend. Bear move on Tuesday could be a threat to the prevailing uptrend counters in the list. Bulls are likely to have opportunity in five counters. Selling opportunities are likely to exist in six counters.
Buying in Satyam is likely to be the best bet for Tuesday's trading. Bullish trigger level for this counter is placed just above the last traded price. Bull pressure on Tuesday is likely to trigger the uptrend in Satyam.
(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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