Nifty Future Breaks Previous Swing Low !
Nifty future has broken the previous swing low at the time of writing this post on the back of news about the possibility of amendment of India Mauritius tax treaty. Mauritius has been the source of at least 30 % of FDI in India and some these have been suspected to be India centric black money. Nifty is at the risk of deep correction if the very minor support of 5175 - 5225 does not hold.
Nifty Futures - Daily Chart
S&P CNX Nifty Index - Weekly Chart
Nifty index has broken the lower support of the long term trading channel as on today. If the index does not recover and close inside the channel in one or two trading days, the break will be confirmed and Nifty will be susceptible to a deep correction of which the magnitude might be as big as 650 points ( the height of the old trading channel ) in the medium term. However, this is subject to the next lower support of 5175 - 5225 area and occasional counter trend rallies
Nifty Options Scene
The June series Nifty Options Put Call ratio ( PCR June series ) weakened significantly to 1.09 times on Friday and was hovering at 0.95 at 10.30 AM 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 19.82, 3.33 and 1.32 respectively as on 17th 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 friday.
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 20th 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 !!!
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. )
Disclaimer: No research, information or content contained herein or in the accompanied spreadsheet shall be construed as advice and is offered for information and educational purposes only. We shall not be responsible and disclaim any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered by the user or any third party as a result of or which may be attributable, directly or indirectly, to the use of or reliance on any information or service provided. All files/information is provided 'as is' with no warranty or guarantee as to its reliability or accuracy. We do not recommend, promote, endorse or offer any guarantee whatsoever in respect of any services or products offered in the advertisements displayed on the site by Google AdSense.
No comments:
Post a Comment