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K. Premkumar

BULLS extended their pressure over Tuesday's trading activity. Their dominance for the second successive day left the bears with no opportunity to recover. The market sentiment reading of the tradable counters stands bullish. Bear domination on Wednesday is likely to reduce the bull count by a considerable margin. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

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Nifty futures recommendation: Initially the October month contract lost around 3 points. Bulls made an instant recovery and were in control of the day's proceedings. The movement in the October contract was around 9 points. It closed with a gain of 5 points with respect to previous close.

The uptrend in the October contract remains undisturbed. The exit level for the long position is still placed in the danger zone. Bearish trigger level for the October contract is placed far away from its current level and this is unlikely to be triggered.

Stock futures recommendation: There were no new entries to the top-10 tradable list. BPCL moved to third position and Tata Steel to the ninth position. The top three traded counters in this segment were Satyam Computer, Infosys and Hindustan Petro.

Except for the downtrend in BPCL, all the other counters in the list are likely to be under threat. Buying opportunities are likely to exist in as much as five counters. Selling opportunities are likely to exist in Ranbaxy, Tata Engineering and Tata Steel.

The best bet for Wednesday's trading is likely to be the buying in Infosys. Its buy level is placed just above the previous close. Bull pressure on Wednesday is likely to initiate the uptrend in the counter.

Cash segment: The composition of the top-10 tradable list remains intact. However, the ranking of the list had a total revamp. Satyam Computer moved to the top slot followed by Hindustan Petro, Mastek and Wipro.

Bear domination on Wednesday could be a threat to the uptrend in Aftek Infosys, Digital, Hindustan Petro and Mastek. On the other hand, the downtrend in Satyam Computer is likely to be under threat.

Traders are left with a lone opportunity for Wednesday's trading. That is likely to exist on the long side of Satyam Computer. The counter is in the downtrend. Its exit and bullish trigger levels are placed quite closer to its current level. Bull domination on Wednesday has the potential to reverse the prevailing downtrend 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 Chennai-based technical analyst and fund management consultant.

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