Date:09/08/2006 URL: http://www.thehindubusinessline.com/2006/08/09/stories/2006080904081500.htm

Back Bull domination

K. Premkumar

Bulls dominated Tuesday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Wednesday is likely to change the sentiment reading in their favour.

On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures

The August month contract opened with a bull gap of around 23 points.

The August contract moved with in a range of around 64 points, touching an intra-day high of 3,209.

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It closed with a gain of around 79 points from its previous close. The short position in the August month contract is reversed. Both 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 Wednesday's trading.

Stock futures

The composition and the ranking of the top 10 tradable list had minor changes. i-flex moved out of the list giving way to SBI.

Tata Steel, ACC and Tata Motors moved down to eighth, ninth and 10th positions respectively. The top three tradable counters in this segment were Reliance, SBI and Tata Steel. The exit level for Ranbaxy is placed at 394.60.

All the counters in the top 10 tradable list are likely to be under threat for Wednesday's trading. There is a lone opportunity on the buy side and ample opportunities on the sell side.

The best is likely to be buying in Satyam. This counter is in downtrend. Bull move on Wednesday is likely to reverse the existing trend in this counter.

Cash segment

The composition and the ranking of the top 10 tradable list had no changes. Most of the counters in the list are in uptrend.

All the counters are likely to be under threat for Wednesday's trading.

There are two opportunities on the bull side and ample opportunities on the sell side for Wednesday's trading.

The best is likely to be selling in VSNL. This counter is in uptrend. Bear move on Wednesday is likely to trigger the downtrend 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.