Friday, April 8, 2011

Update for 8th April 2011

A Mild Correction is On? 

  • It seems that the mild correction as envisaged in the yesterday's post is on now. The supports and resistances given in the previous post remain valid and are reproduced below. 
  • Major lower support for the Nifty contracts are at the 5700 to 5750 levels.
  • Above these levels, minor supports are available at 5800 and 5850.
  • Please note our the preferred view for the market is for some more consolidation between the 5700 and 5950 levels in the immediate future.
  • Traders and investors may take note of the first raising of interest rates done by the European Central Bank after the big bear market, which may signal the start of the monetary tightening process in the developed economies. It is natural for equities to under perform in a rising interest rate regime. 
  • This late update of the Momentum Signal trading system  contains only the basics of the system due to some time constraints. Please bear with the author.   
     Nifty Futures - Intra-day Chart

  Nifty Futures  - Daily Chart 

 Nifty Options Scene   

The April series Nifty Options Put Call ratio ( PCR April series ) decreased to 1.27 times on Thursday.

 Latest Ultimate Momentum Signal 

The Momentum Signals have closed in the positive momentum area for the eleventh day in succession as on Thursday.

Projected Momentum Signal Close Values

The projected levels of Momentum Signal values applicable to various ranges of closing values of the current month Nifty Futures, Nifty Index and the BSE Sensex,  as at the close of next trading day, ie. as on 8th April, 2011, are given in the following table. All readers are requested to take note that the table below is just a ready reckoner for the next day's Momentum Signal values and the figures are not intended to be interpreted as any targets for the Nifty futures or indices shown therein.
Click on the table above for an enlarged view.

Readers are also requested to go through The Signal, Entries and Exits, Position Limits, Risk Factors, Risk Analysis,  and FAQs pages to gain a reasonable understanding of the trading system. Please do post your  comments and suggestions on how new  posts can be made more useful.

Cheers and Prosperous Investing and Trading !!!


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