Friday, July 29, 2011

Update for 29th July 2011

 The Test of 50 DMA ( 5525 ) is On !  

Yesterday's derivative expiry did not lead to any free fall and the expiry was managed in the vicinity of the 5500 strike. It seems that the lower open helped the market to retain the ability to test the gap at the open. However, today's market action of another lower open below the yesterday's range and a test of yesterday's high and 50 DMA  may be indicating a sort of short term reversal. If today's  rally leads to a close above the 50 DMA  or a better close above the 5550 level, then it may be construed that the market is still bound by the earlier tight trading range between the 50 DMA and the 200 DMA. Until the market breaks out clearly out of this trading range, most technical indicators designed to trade trends may continue to whipsaw. However, a failure to clear the 5550 level may lead to a test of lows and even the continuation of the correction.

   Nifty Futures - Daily Chart  

Nifty Options Scene   

The August series Nifty Options Put Call ratio ( PCR August series ) closed 1.02 times as on Thursday. 

 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 19.86, 3.40 and 1.29 respectively as on 29th 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 sell territory as on 28th 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 29th 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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