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K. Premkumar

BULLS extended their pressure during the initial hours of Tuesday's trading. Thereafter, bears gained control of the day's proceedings. Tuesday's market action resulted in increasing the bull count by a considerable margin. The sentiment reading of the tradable counters remains bullish. Bear domination on Wednesday is likely to increase the bear count by a considerable margin. Otherwise, the prevailing sentiment is likely to continue with added strength.

Nifty futures recommendation: The near month February contract opened one point above previous close and went further by another 4 points. Later on, bears made a strong comeback and recouped their early losses. February contract moved within a band of 12 points. It closed with a loss of 5 points with respect to Monday's close.

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Bulls were successful in initiating the uptrend in the February contract. However, the long position is likely to be under threat for Wednesday. Bearish trigger level for the February contract has also been moved closer to its current level. Bear domination on Wednesday has the potential to reverse the prevailing trend in the February contract.

Stock futures recommendation: The composition of the top-10 tradable list remains unchanged. The ranking of the list had some changes. Satyam Computer moved to the top slot followed by Infosys and Digital.

Most counters in the list are in the uptrend. Bear domination on Wednesday could be a threat to the prevailing uptrend counters. Selling opportunities are likely to exist in BPCL, Infosys, Reliance Industries and Satyam Computer. Buying opportunities are likely to exist in MTNL and Tata Steel.

The best bet is likely to be the selling in Satyam Computer. Its sell level is placed very close to its last traded price. Bear pressure on Wednesday is likely to initiate the downtrend in the counter.

Cash segment: There were no new entries or exits to the top-10 tradable list. VisualSoft moved to the sixth position followed by Hinduja, Wipro and Hindustan Petro. The uptrend in Polaris Soft is likely to be terminated at Rs 153.80.

Except for the VisualSoft, all the other counters in the list are likely to be under threat. Bears are likely to have opportunity in Reliance and Satyam. A lone buying opportunity is likely to exist in Wipro.

The best among the above is likely to be the selling in Satyam. The counter is in the uptrend. Its exit and bearish trigger levels are placed closer to its current level. Bear move on Wednesday is likely to reverse the prevailing uptrend.

(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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