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Friday, August 5, 2011

Update for 5th August 2011



The Tsunami is Here !


Yesterday, it felt like the market is in the process of testing the resistances around candle of two days back. But the test failed at the first gate, ie. at the low of the reference candle. What happened afterwards was beyond anybody's guess. Now, at the time of writing this post, Nifty Future is hanging on to the last known support of 5175 - 5200 area. As the financial markets have entered an era of extreme volatility, technical predictions would be of not much help. Yet, it seems that a break of the support at 5175 - 5200 may lead to a swing even to a low of 4800 levels. However,  it remains to be reiterated that markets never travel in straight lines and even if it reaches the predicted levels, it might be after much back and forth movements.  It is also notable that sharp falls are associated with sharp recoveries, as the increased level of volatility acts both the ways.

Nifty Futures Daily Chart       


Nifty Options Scene   

The August series Nifty Options Put Call ratio ( PCR August series ) closed 0.88 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 19.19, 3.29 and 1.29 respectively as on 4rd August 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 sell territory as on 4th August, 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 5th 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 !!!

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1 comment:

kalpeshmmaniar said...

Sensex bounced exactly from the level of 16990, I had mentioned that sensex could hit 16969, sensex bounced exactly from 16990.

What next?
August will be volatile month and will see turbulent markets, the present correction would end in September, when markets take off in a big way.

To get accurate forecasting please visit http://www.kalpeshmaniar.com