Nifty Futures Supported by the 5400 Strike ?
The interest hike by the RBI was more or less on the expected lines and was already discounted by the market. Hence the absence of any severe reaction to the news. However, as envisaged in the previous post, temporary spikes after a lower open happened post the news event. As the event is over, market may go back to it's own low volume listless trading mode, which makes all kinds of analysis much more difficult. As of now, it seems that the Nifty future is supported by the huge open interest of Put options at the 5400 strike. Though the overall PCR of June series declined on Thursday, it is still above the unitary value and is still away from the very low values associated with very bearish scenarios.
Nifty Futures - Intra-day Chart
Nifty Futures - Daily Chart
Nifty Options Scene
The June series Nifty Options Put Call ratio ( PCR June series ) weakened significantly to 1.09 times on Thursday. The maximum open interest of June series Nifty Put options is still placed at the 5400 strike at present.
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 19.93, 3.35 and 1.31 respectively as on 16th June 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 negative momentum territory with a maximum negative value of -100 as on Thursday.
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 17th June, 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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