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K. Premkumar

BULLS prevailed over Monday's trading activity. Bears were unable to make any impact during the day's trading. The sentiment reading of the tradable counters stands in favour of the bulls. Bear domination on Tuesday is likely to reduce the bull count by a substantial margin. On the contrary, the prevailing sentiment is likely to continue with added strength.

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Nifty futures recommendation: July contract opened one point above previous close and went up by another 7 points. Thereafter, bears managed to make a partial recovery. July contract closed with a gain of around 4 points with respect to Friday's close.

The sideways trend in the July contract remained undisturbed. In the normal course of trading on Tuesday, the prevailing sideways trend is likely to continue. Bullish and bearish trigger levels for the July contract are equally poised from the current level.

Stock futures recommendation: The top-10 tradable list underwent a change. ITC gained entry with the exit of MTNL. Reliance Industries moved to sixth position followed by Hindustan Petro, BPCL and M&M. Satyam Computer continues to dominate the trading activity in this segment followed by Reliance Industries and Infosys.

None of the counters in the list is in the downtrend. Except for Infosys, ITC and Reliance Industries all the other counters are likely to be under threat. Bears are likely to have opportunity in M&M and Tata Steel. A lone buying opportunity is likely to exist in Tata Steel.

Selling in Tata Steel is likely to be the best for Tuesday's trading. Its bearish trigger level is placed quite closer to its current level. Bear move on Tuesday has the potential to initiate a fresh downtrend in the counter.

Cash segment: Mastek and Zee Tele gained entry with the exit of Hinduja TMT and NIIT. The ranking of the list too had some changes. GTL moved to ninth position followed by Zee Tele.

The exit level for the long position in NIIT is placed at Rs 249.45.

Bear domination on Tuesday is likely to terminate the uptrend in Digital and Satyam Computer. The prevailing downtrend counters in the list are likely to be safe. Selling opportunities are likely to exist in GTL, Infosys and Polaris Soft. A lone buying opportunity is likely to exist in GTL.

The best bet for Tuesday is likely to be in Polaris Soft. Its sell level is placed very close to its last traded value. Bear pressure on Tuesday is likely to trigger this level.

(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 Chennai-based technical analyst and fund management consultant.

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