Wednesday, May 4, 2011

Update for 4th May 2011



  Finally RBI Takes ( Late ) Action

  • Nifty future has sold off as envisaged in the Monday's post, following the first firm action taken by the RBI against runaway inflation which has been running high uncontrolled hitherto, as both the central bank and the government were doing only some lip service on the inflation fighting front.
  • If the present downtrend holds, Nifty futures may revisit the 5400 levels in the medium term. However, the contract may get support at the 5450 to 5500 area in the short run.
  • This update is also limited to just the usual trading system data and charts.
    Nifty Futures - Intra-day Chart



   Nifty Futures  - Daily Chart 


   Nifty Options Scene   

The May series Nifty Options Put Call ratio ( PCR May series ) deteriorated to a below normal and bearish looking 0.85 times on Tuesday. The deterioration in the PCR may indicate the slightly 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 21.68, 3..53 and  1.12 respectively as on  3rd 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 remained in 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 4th 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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