The Hindu Business Line : Bulls march ahead

Bulls prevailed the Monday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear domination on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures recommendation: The June month contract opened with a bear gap of around 25 points. However, bears could not capitalise on their initial momentum and gave way to bulls. The June month contract moved with in a range of around 85 points. It closed with a gain of around 41 points from its previous close.

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The long position in the June month contract remains intact. 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 Tuesday's trading.

Stock futures recommendation: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Tata Steel moved up to first position pushing down the Reliance to second position. MTNL and Bajaj Auto interchanged their positions. The top-3 tradable counters in this segment were Reliance, Tata Steel and Relcapital. Except Bajaj Auto all other counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. There are three buying opportunities for Tuesday's trading. The best is likely to be buying in Ranbaxy. Bull move on Tuesday is likely to trigger the up trend in this counter.

Cash segment: The composition of the ranking of the top-10 tradable had no changes. However, the ranking of the list had minor changes. Reliance Capital moved up to fifth position and Tata Motors moved down to ninth position. Tata Steel and Maruti interchanged their positions.

All the counters in the top-10 tradable list are likely to be terminated during Tuesday's trading. There are two opportunities on the buy side and a lone opportunity on the sell side. The best is likely to be buying in SAIL. This counter is in down trend. Bull domination on Tuesday is likely to reverse the existing 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.