Tuesday, June 14, 2011

Update for 14th June 2011

   Nifty Futures Remain in the Range !

Though Nifty futures broke the 5480 and 5450 minor supports in the two previous trading sessions, the closes were above or around the 5480 support. These higher closes as well as the very low volumes seen at the lower end of the trading ranges in the two previous trading sessions were actually the symptoms of the earlier indicated recent resilience. As the market has already recovered from the 5400 - 5450 support, now the question is whether the market will remain in the trading range for some more time or try to breakout above the range. Since the market participants are keenly waiting for the impending RBI  action, market is more likely to trade in the present range than trying to make a breakout.   

Readers of this blog are requested to note that the Momentum Signal is prone to make whipsaw signals in ranged markets and the fact is already elaborated in the Risk Factors page.

   Nifty Futures - Intra-day Chart    

  Nifty Futures  - Daily Chart 

  Nifty Options Scene   

The June series Nifty Options Put Call ratio ( PCR June series ) improved to 1.29 times on Thursday. The maximum open interest of June series Nifty Put options is placed at the 5400 strike at present. Naturally, this area may act as some support to the market for the time being.

 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, 3.40 and  1.29 respectively as on 13th June 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 in to the  negative momentum territory 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  14th June, 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 !!!

To access and/or download  the free online Position Limit Calculator click here. ( Please use the latest or updated browsers to access the Google Documents service. )
© 2010-2011, momentumsignal.blogspot.com All rights reserved.

Disclaimer: No research, information or content contained herein or in the accompanied spreadsheet shall be construed as advice and is offered for information and educational purposes only. We shall not be responsible and disclaim any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered by the user or any third party as a result of or which may be attributable, directly or indirectly, to the use of or reliance on any information or service provided. All files/information is provided 'as is' with no warranty or guarantee as to its reliability or accuracy. We do not recommend, promote, endorse or offer any guarantee whatsoever in respect of any services or products offered in the advertisements displayed on the site by Google AdSense.

No comments: