Tuesday, July 12, 2011

Update for 12th July 2011

The Reversal Leading to a Correction ?

As on yesterday's close, the Ultimate Momentum Signal closed in the neutral territory. The last buy signal was given by the system on 27th June, 2011 at a Nifty future level of 5537. This buy signal lead to maximum favorable excursion ( MFE ) or maximum profit opportunity of 223 Nifty points. 

Meanwhile, as envisaged in all the three previous posts, Nifty future has returned to the lower support area of 5500 to 5550 level as a consequence of it's failure to break above the 5750 - 5760 resistance. Now the important question is whether the correction would continue or not. Irrespective of the outcome, the Momentum Signal seems to be poised to give a sell signal as on today's close unless the market makes a strong recovery intraday. In case the correction continues after some trials to fill the gap between yesterday's and  today's trading ranges, the next support would be at the 5350 - 5400 levels where the lower boundary of the old trading channel is situated at present.

Nifty Futures - Daily Chart    

Nifty Options Scene   

The July series Nifty Options Put Call ratio ( PCR July series ) closed lower at a  1.17 times 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 20.67, 3.48 and 1.26 respectively as on 11th July 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  closed lower at -0- as on 11th July, 2011. 

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 next close, ie. as on 12th July, 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 About, 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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