Thursday, June 2, 2011

Update for 2nd June 2011



   Market Spooked by U S Fall !

  • Nifty futures as well as the underlying index almost reached the lower end of the 5600 - 5650 target area described in the post dated 30th May 2011.
  • Yesterday's post had indicated a slow down or a pause in the up trend at the then levels of 5575.
  • Now comparatively large losses in the U S markets have spooked the uptrend and market has opened lower. As the quantum of the U S losses is bigger than normal,  doubts can arise as to the continuation of the up trend.
  • Therefore, if the market is unable to recover in the next two days or so, the uptrend may fail as risk levels are already at high levels because of all round uncertainties prevailing at these times.   
   Nifty Futures - Intra-day Chart 



     Nifty Futures  - Daily Chart  



  Nifty Options Scene   

The June series Nifty Options Put Call ratio ( PCR May series ) was hovering at a very normal 1.40 times on Wednesday. The PCR  as such is not showing any negative bias to the market as of now unlike in the previous month.


 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 20.65, 3.47 and  1.22 respectively as on  1st 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 positive territory  with a value of  100 as on Wednesday. 

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  2nd 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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