The Hindu Business Line : Bull domination

BULLS dominated Tuesday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear pressure on Wednesday has the potential to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The January month contract opened with a bull gap of around 10 points. The January month contract moved with in a range of around 25 points touching an intra-day low of 2,888. It closed with a gain of around 27 points from the previous close.

The short position in the January month contract exited and entered long in the morning session. 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.

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Stock futures recommendation: The composition of the top 10 tradable list had no changes. However, the ranking of the list had minor changes. ONGC and ICICI Bank interchanged their positions. The top three tradable counters in this segment were SBI, Maruti, and Reliance.

Except Reliance, all the counters in the top 10 tradable list are likely to be under threat for Wednesday's trading. There are three opportunities on the buy side and ample opportunities on the sell side. The best for Wednesday is likely to be selling in Satyam. This counter is in uptrend. Bear pressure 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. All the uptrend counters in the top 10 tradable list are likely to be under threat for Wednesday's trading. On the other hand, two downtrend counters are likely to be terminated.

There are three opportunities on the buy side and ample opportunities on the sell side. The best is likely to be selling in SBI. Bear pressure on Wednesday has the potential to reverse the prevailing 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.