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K. Premkumar

BULLS were in total command of Monday's trading activity. Their dominance left the bears with no opportunity to recover during the day's trading. The sentiment reading of the tradable counters stands totally bullish. Bear domination on Tuesday is likely to reduce the bull count by a considerable margin. On the contrary, the prevailing sentiment is likely to continue.

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Nifty futures recommendation: The near month December contract opened with a bull gap of 5 points and went further by another 15 points. Bears were unable to make any impact during the day's trading. The intra-day movement in the December contract was around 21 points. It closed with a gain of 18 points with respect to previous close.

The long position in the December contract remains undisturbed. The exit and bearish trigger levels for the December contract are placed very far away from its current level. These levels are unlikely to be triggered on Tuesday.

Stock futures recommendation: The top-10 tradable list underwent a change. State Bank gained entry with the exit of Ranbaxy. The ranking of the list remains the same with no major changes. The top-three traded counters in this segment were Satyam Computer, Reliance Industries and Hindustan Petro. Trading activity in BPCL was very hectic with more than 4700 trades.

The exit level for the uptrend in Ranbaxy is placed at Rs 536.95.

Bear domination on Tuesday could be a threat to most of the uptrend counters in the list.

Traders are left with a lone opportunity for Tuesday's trading. This is likely to exist on the short side of L&T. Its exit and bearish trigger levels are placed very close to its last traded value. Bear pressure on Tuesday is likely to reverse the prevailing uptrend in this counter.

Cash segment: There were no new entries or exits to the top-10 tradable list. Wipro moved to the sixth position followed by Polaris Soft and VisualSoft.

For Tuesday, the uptrend in Aftek Infosys, Infosys and Reliance Industries is likely to be under threat. Traders holding positions in the above counters will have to be cautious.

A lone opportunity is likely to exist on the short side of Infosys. This counter is in the uptrend. Its exit and sell levels are placed closer to its current level. Bear domination on Tuesday has the potential to trigger these levels.

(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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