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Tuesday, May 31, 2011

Update for 31st May 2011


    The Test of 20 DMA is On !

  • Nifty futures closed flat yesterday, just below the 20 DMA.
  • Generally speaking,  the 15 or 20 DMA acts as support or resistance in short term trends, in the daily  charts.
  • As such, the positive scenarios described in the last post is dependable on a successful test of the 20 DMA by the Nifty future. As on Monday, the 20 DMA closed at 4480.
 Nifty Futures - Intra-day Chart    

 

      Nifty Futures  - Daily Chart  



  Nifty Options Scene   

The June series Nifty Options Put Call ratio ( PCR May series ) was hovering at a very normal 1.27 times on Monday. The PCR  as such is not showing any negative bias to the market as of now unlike in the previous month.


 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 20.25, 3.39 and  1.27 respectively as on  30th 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 moved to the positive territory  with a value of  50 as on Monday. 
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  31st 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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