Monday, July 25, 2011

Update for 25th July 2011

    Another Bounce, Now What ?      

  • The technical position of the whole market has not changed at all in the past week.
  • Nifty futures and Nifty index are steadfastly trading around the 100 DMA at around the 5890.
  • All attempts to break out from the narrow range have failed so far.
  • Lower supports for the market are at the 5500 - 5550 ( 50 DMA at 5515 ) and 5350 - 5400 levels. 
  • Similarly the resistance is at the last week's high at 5650-5660 and  5700 -5760 levels.
  • Even if the market breaks out  firmly above the last Friday's high, it will still face the resistance at the 5700 -5760 area from the forward slanting supply line as well as the 200 DMA.
  • If the market successfully breaks out above the 5700 -5760 area, then, a rally to 5900 to 5950 may be expected. 
  • As already stated in the previous posts, a firm break out above or below the major resistances or supports is becoming a requisite before for most technical signals could start working.      
  Nifty Futures - Daily Chart 

Nifty Futures - Daily Moving Averages Chart 

S&P CNX Nifty Index - Weekly Chart 

Nifty Options Scene   

The July series Nifty Options Put Call ratio ( PCR July series ) increased and closed at a normal1.23 times as on Friday. 

 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, 3.50 and 1.26 respectively as on 22nd 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 to the neutral territory with a value of  -0- as on 22nd 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 25th 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 AboutThe 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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