Back Bulls prevail
K. Premkumar
Bulls prevailed over Monday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear domination on Tuesday is likely to change the sentiment reading in their favour.
On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.
Nifty futures recommendation: The March month contract opened with a bull gap of around six points. It moved with in a range of around 43 points making an intra-day high of 3329. The March contract closed with a gain of around 49 points from its previous close.
The long position in the March month contract is intact. The long exit and short entry levels are placed quite far away from its last traded price.
In the normal course of trading, these levels are unlikely to be triggered during Tuesday.
Stock futures recommendation: The composition and the ranking of the top-10 tradable list had no changes. The top-3 tradable counters in this segment are Tata Steel, VSNL and ACC.
All the counters in the top-10 tradable list are likely to be terminated during Tuesday's trading. There are two opportunities on the buy side and ample opportunities on the sell side.
The best is likely to be selling in State Bank of India. Bear move on Tuesday is likely to trigger the downtrend in this counter.
Cash segment: The composition and ranking of the top-10 tradable list had minor changes. Reliance Capital went out of the list and SAIL got in to the list.
Infosys occupied the fifth position while Satyam and State Bank moved down to the seventh and eighth position respectively.
All the existing positions in the top-10 tradable list are likely to be under threat for Tuesday's trading. There are four opportunities on either side of trading.
The best is likely to be selling in Tata Motors. This counter is in a sideways mode. Bear pressure on Tuesday is likely to initiate a fresh down trend 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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