Wednesday, June 22, 2011

Update for 22nd June 2011

 Nifty Futures in Sideways mode ?

As envisaged in the previous post, Nifty future seems to have gone in to a sideways trading mode in which it is in the process of testing the broken support of 5350. As usual, a broken support becomes a resistance and as such, the Nifty contract may find resistance at the 5350- 5400 range on any recovery efforts. Significant put writing was seen in yesterday's trading around the lower support at the 5200 strike. This might offer some support in the short term.  However, the fact of Nifty's break of  the old trading channel remains as a serious technical challenge for the market in the medium term.
  Nifty Futures - Intraday Chart  

   Nifty Futures - Daily Chart    

Note : The chart above shows the edited open and high price of current month Nifty futures contract as the reported open price was at  100 points higher than the realistic actual transactions seen at the open.

Nifty Options Scene   

The June series Nifty Options Put Call ratio ( PCR June series ) weakened  to 0.91 times on Tuesday.

 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 19.48, 3.27 and  1.34 respectively as on 2st 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 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  22nd 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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