Tuesday, June 28, 2011

Update for 28th June 2011

   Now, the Moving Averages At Play !

After three days of strong gains, Nifty future contracts are taking a breather after encountering resistance offered by the daily moving averages. In fact the 50 and 100 day moving averages ( DMAs ) of the Nifty contracts are in convergence at the 5550 levels. ( Please see the DMAs Chart below for details. ) The 5550 to 5650 area has been an important reference point and has acted both as support and resistance for a long time. As such the it is natural for the Nifty contracts to spend some more time trading at the present range.  Since the present uptrend has started as a reversal after the break of an important support level, the trend may have to continue for some more time with some upside. A break above of the 5550 - 5560 area may help the Nifty futures to test the convergence of 200 DMA and the falling trend line at around the 5725 - 5750 levels.   

Nifty Futures - DMAs Chart

Nifty Futures - Daily Chart

Nifty Options Scene   

The June series Nifty Options Put Call ratio ( PCR June series ) improved tremendously  to a higher than normal  1.50 times on Monday. The change in the Nifty option positions indicate support at 5400 and resistance at 5500 and 5600 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 20.38, 3.43 and  1.28 respectively as on 27th 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 positive momentum territory ( but area )  with  value of 100 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  28th 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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