One More Day of Flat Trading ... !
As expected, the Nifty futures traded more or less within the previous day's trading range on Monday too. The next direction of the market remains as unpredictable as ever. ( Please read the previous post for more comments on the present market conditions. ) The highest open interest in the current month Nifty calls are at the 5600, 5500 and 5700 strikes at present. Similarly, the highest open interest in the Nifty puts are at 5300, 5400 and 5500 strikes. It seems that, barring any unforeseen event, the Nifty may end near at the 5500 levels on expiry. This is just a guess on the basis of the open interest positions as on Monday and these are subject to change too.
Nifty Futures - Daily Chart
Updated Momentum Signal Spreadsheet
The updated spreadsheet showing the Momentum Signal as at the close of the trading on 23rd August, 2010 is given below :
The Momentum Signal has been returning +100 values for the last three trading sessions.
Projected Momentum Signal Close Values
The projected levels Momentum Signal values applicable to various ranges of closing values of the Nifty Futures, Nifty Index and the BSE Sensex, as at the close of next trading day, ie. as on 24th August, 2010, are given in the following table.
Please click on the table to enlarge. For more info on the above table, please click here.
As matter of abundant caution, it is reiterated that the market may still be range bound by all effects and therefore, the risks of the system indicating whipsaw signals are extremely high if the markets remain range bound.
"Readers of this blog may please note the following 'Risk Factor' which is being repeated almost daily these days. The markets may be trading in small ranges at the top end of a slow climb and for all practical purposes the trading may remain range bound. Range bound markets are not suitable for the profitable trading of the Momentum Signal system."
"As the Momentum Signal is primarily a trend following system, it may indicate whipsaw signals in range bound markets. As such, all readers of this blog are requested to read the various pages describing the system and understand all the intricacies of trading the Momentum Signal and it's risk factors too. Please do write in your comments and suggestions."
Cheers and Prosperous Investing and Trading !!!
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