The Hindu Business Line : Bear domination

Bears dominated over Tuesday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear domination on Wednesday is likely to neutralise the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation

The July month contract opened with a bull gap of around 19 points and went up by another 12 points.

However, bulls could not capitalise on their initial momentum and gave way to bears. The July month contract moved within a range of around 56 points. It closed with a loss of around 15 points from its previous close.

Click here for table

The long position in the July month contract is intact. The long exit and short entry levels are placed quite nearer to its last traded price. These levels are likely to be triggered during Wednesday's trading.

Futures recommendation

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Maruti and Satyam interchanged their positions.

The top-three tradable counters in this segment were Reliance, Tata Steel and State Bank.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. A lone buying opportunity is likely to exist in Maruti. On the other hand, there are ample opportunities on the bear side.

The best is likely to be selling in Infosys. This counter is in uptrend. Bear move on Wednesday is likely to trigger the downtrend in this counter.

Cash segment

The composition and the ranking of the top-10 tradable list had minor changes. ONGC moved out of the list and SAIL got in to the list. Tata Motors moved up to ninth position from tenth position. The long exit level for ONGC is placed at 1079.75.

Lone buying opportunity is likely to exist in Maruti. There are seven opportunities on the bear side.

The best is likely to be selling in Tata Motors. This counter is in uptrend. Bear move on Wednesday is likely to trigger the sell level 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.