Wednesday, July 27, 2011

Update for 27th July 2011

 Nifty Future Back to the 100 DMA !  

Following the higher than expected hike of interest rates by the RBI on Tuesday, Nifty future has already abandoned it's tentative move to test the higher resistances and returned to the more familiar level of 5880 where the 100 DMA is situated now. The important question now is whether the contract will test the lower support of 5500 and 50 DMA at 5520. As the 5500 strike is having huge Put option open interest, the level may act as a major reference point for today and tomorrow. Though unlikely, in case the 5500 level is broken before the expiry, it may lead to a mad scramble to secure the open positions by the put writers. They could cover / hedge their positions either by buying the open puts at a loss or by selling Nifty futures. As the time before expiry is short, some of them may hedge short puts by selling Nifty futures and this may lead to a sharp fall to the next strike at 5400. Apart from this, there is no change to the technical position of the market.  

   Nifty Futures - Daily Chart   

Nifty Options Scene   

The July series Nifty Options Put Call ratio ( PCR July series ) decreased and closed at relatively low 1.04 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 20.22, 3.46 and 1.27 respectively as on 26th 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 as on 26th 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 27th 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 !!!

To access and/or download  the free online Position Limit Calculator click here. ( Please use the latest or updated browsers to access the Google Documents service. )

© 2010-2011, All rights reserved.

 Disclaimer: No research, information or content contained herein or in the accompanied spreadsheet shall be construed as advice and is offered for information and educational purposes only. We shall not be responsible and disclaim any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered by the user or any third party as a result of or which may be attributable, directly or indirectly, to the use of or reliance on any information or service provided. All files/information is provided 'as is' with no warranty or guarantee as to its reliability or accuracy. We do not recommend, promote, endorse or offer any guarantee whatsoever in respect of any services or products offered in the advertisements displayed on the site by Google AdSense.

No comments: