Wednesday, July 20, 2011

Update for 20th July 2011

   A Bounce from the Support Area !

Yesterday, Nifty futures bounced from the upper end of the earlier indicated support area of 5500 - 5550. In fact, Nifty futures recorded nearly identical lows at around the 5560 mark on three trading days. Once the market finds that it is not breaking a support, it tends to move to the opposite direction and tries to test the next resistance. Last week's high at around the 5660 - 5670 remains as the short term resistance. If this level is taken out, then the resistance from the 200 DMA and downward moving upper resistance line at the 5700 - 5750 level may come in to play. Barring a breakout above the latter resistance, Nifty may spend some more time trading directionless in the broad trading range of 5500 to 5700 in the immediate future.

Nifty Futures - Daily Chart  

Nifty Options Scene   

The July series Nifty Options Put Call ratio ( PCR July series ) gained and closed at 1.26 times as 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 20.57, 3.48 and 1.26 respectively as on 19th 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  has moved in to the neutral territory with a value of  -20 as on 19th 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 20th 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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