Monday, August 1, 2011

Update for 1st August 2011

Back in the Old Trading Range ?  

As indicated in the previous post that a short reversal might be in the making, Nifty future is testing the 5550 level today morning. Failure to clear the 5550 - 5560 level may still lead to a test of the lows. However, closes between the 50 DMA ( 5525 ) and the 100 DMA ( 5590 ) will indicate continuation of the trading range. As the Nifty futures are placed between important trend lines and various Moving Averages, some kind of two way trading will continue in the absence of  any triggers. Therefore, all trend following systems, including the Momentum Signal will continue to whipsaw.

Nifty Futures - Moving Averages Chart

Nifty Futures Daily Chart 

S&P CNX Nifty Index - Weekly Chart 

Nifty Options Scene   

The August series Nifty Options Put Call ratio ( PCR August series ) closed 1.12 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 19.76, 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 29th 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 1st August, 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. )

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