Monday, June 20, 2011

Update for 20th June 2011

    Nifty Future Breaks Previous Swing Low !

Nifty future has broken the previous swing low at the time of writing this post on the back of news about the possibility of  amendment of India Mauritius tax treaty.  Mauritius has been the source of at least 30 % of FDI in India and some these have been suspected to be India centric black money. Nifty is at the risk of deep correction if the very minor support of 5175 - 5225 does not hold.

   Nifty Futures - Daily Chart    

S&P CNX Nifty Index - Weekly Chart

Nifty index has broken the lower support of the long term trading channel as on today. If the index does not recover and close inside the channel in one or two trading days, the break will be confirmed and Nifty will be susceptible to a deep correction of which the magnitude might be as big as 650 points ( the height of the old trading channel ) in the medium term.  However, this is subject to the next lower support of 5175 - 5225 area and occasional counter trend  rallies

Nifty Options Scene   

The June series Nifty Options Put Call ratio ( PCR June series ) weakened significantly to 1.09 times on Friday and was hovering at 0.95 at 10.30 AM on Monday.

 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 19.82, 3.33 and  1.32 respectively as on 17th 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 remained in the  negative momentum territory with a maximum negative value of -100 as on friday.

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  20th 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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