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K. Premkumar

BULLS were in control of Tuesday's trading activity. Their dominance has now extended for the tenth successive trading day. During the wee hours of the day's trading, bears managed to make a partial recovery. The market sentiment reading of the tradable counters remains strongly bullish. Irrespective of bull or bear domination on Wednesday, the prevailing sentiment is likely to continue with a slight change in its value.

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Nifty futures recommendation: During the open of Tuesday's trading, the near month November contract lost around 2 points. Thereafter bulls took over and were in total command of the day's proceedings. The movement in the November contract was around 15 points. It closed with a gain of 7 points with respect to previous close.

The exit level for the long position in the November contract is placed safely. The position is currently locked up with a decent profit of 34 points. The exit and bearish trigger levels for the November contract are placed far away from their current level.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remain unchanged. The top three traded counters in this segment were Satyam Computer, Reliance Industries and Infosys.

For those still holding long positions in ACC, BPCL and Dr. Reddy's Lab may do so with the stop loss placed at Rs 143.95, Rs 186.75 and Rs 718.90 respectively.

Most counters in the list are in the uptrend and they are likely to be safe. Bears are likely to have opportunity in Ranbaxy and L&T. A lone buying opportunity is likely to exist in Ranbaxy.

The best among the above is likely to be the selling in L&T. Its sell level is placed closer to its current level. Bear move on Wednesday has the potential to trigger this level.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a minor change. HCL Tech and VisualSoft interchange their positions. Except for the uptrend in Aftek Infosys, all the counters in the list are likely to be safe.

Traders are left with a lone opportunity for Wednesday's trading. This is likely to exist on the long side of HCL Tech. This counter is in the sideways mode. Its bullish trigger level is placed very close to its last traded price. Bull pressure on Wednesday is likely to initiate a fresh uptrend 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 Chennai-based technical analyst and fund management consultant.

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