The Hindu Business Line : Bull domination

Bulls dominated Monday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Tuesday is likely to change the sentiment reading to bearish.

NIFTY FUTURES

The November month contract opened with a bull gap of around 6 points from its previous close. The November month contract moved within a range of around 26 points making an intra-day high of 3980.25. The November contract closed with a gain of around 24 points from its previous close.

The short position in the November contract exited and entered long. 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 trading on Tuesday.

STOCK FUTURES

The composition and ranking of the top-10 tradable counters had minor changes. Tata Motors gave way to Hindustan Lever. The top-3 tradable counters in this segment were Reliance Capital, IVRCL and India Cements. The long exit level for Tata Motors is placed at 826.25.

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Except Reliance Capital and ACC, the other uptrend counters are likely to be under threat for Tuesday's trading. On the contrary, the two downtrend counters are likely to be terminated. There are ample opportunities on the bear side and two opportunities on the bull side for Tuesday's trading. The best bet is likely to be selling in Tata Steel. This counter is in uptrend. Bear move on Tuesday has a potential to trigger the short entry level in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. Tata Motors gave way to ONGC. The long exit level for Tata Motors is placed at 824.75.

Except ACC and Reliance capital, the other uptrend counters in the top-10 tradable list are likely to be under threat for Tuesday's trading. On the other hand, the two downtrend counters are likely to be terminated.

There are five opportunities on the sell side and three opportunities on the buy side for Tuesday's trading. The best is likely to be selling in Tata Steel. This counter is in uptrend. Bear move 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.