Wednesday, May 18, 2011

Update for 18th May 2011

  The Defensives Stand Tall !

  • In spite of  a shocker by SBI and weakness in pivotals like Reliance, ONGC and the other rate sensitives, the defensive stocks from IT, FMCG and Pharma have stood like a rock preventing severe damage to the market on Tuesday.
  • Therefore, as indicated in the previous post, the fall in Nifty futures has not been very convincing move on the part of the bears.
  • However, some weakness in the so called strong shares may keep the downtrend going further as new downward breaks were seen in some of the big stocks like Reliance, SBI, Tata Steel etc.
  Nifty Futures - Intra-day Chart

    Nifty Futures  - Daily Chart

  Nifty Options Scene   

The May series Nifty Options Put Call ratio ( PCR May series ) decreased slightly to a below normal and bearish looking 0.68 times on Tuesday. The below normal PCR may indicate the negative bias of the market. 
 Nifty Trailing Fundamentals    

The trailing Price Earnings Ratio  ( PE Ratio ), Price to Book Value ( PB Ratio ) and Dividend Yield ( DY Ratio ) of the Nifty Index  were at 20.16, 3.41 and  1.24 respectively as on  17th May 2011.  ( More information and a long term analysis on Nifty historical valuation are available from the "Nifty Fundas" page ).

 Latest Ultimate Momentum Signal 

The Momentum Signal has gone to the negative momentum territory  with a value of  -100 as on Tuesday.

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 18th May, 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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