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Tuesday, July 5, 2011

Update for 5th July 2011



  Rally has Hit a Speed Breaker ?

Nifty futures traded mostly sideways yesterday, though the contract opened, traded and ended up in the positive territory. And Monday's high remained lower than the previous day's high of 5702 at 5690. The low also remained higher than Friday's low. Volumes were also very low  This has lead to the formation of a low volume inside day candle in the daily chart of the Nifty contracts and the major indices. An inside day candle after a strong rally can indicate a pause to even a reversal at some times. But a scenario of some more of sideways trading and another test the resistances is also a plausible right now. Today's trading so far is also pointing towards this scenario of sideways movements. Please see the previous two posts for a detailed discussion on the technical position as well as a discussion on supports and resistances.

Nifty Futures - Daily Chart 



Nifty Options Scene   

The July series Nifty Options Put Call ratio ( PCR July series ) closed at a normal 1.30 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 20.83, 3.50 and  1.25 respectively as on 4th 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 remained in the positive momentum territory ( but area )  with  value of 100 as on Monday. 

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 close of next trading day, ie. as on 5th 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 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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