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 !!!
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