study case of trading system---tata steel.here trend,momentum,bias all negative.
study case for trading system------bank of india.here trend,momentum,bias all positive
******Trading system for BANK NIFTY3d LMA- 5339, 3d HMA- 5638.
3d SMA- 5495, 8d SMA- 5395, 34d SMA- 5944.
~BIAS – neutral, MOMENTUM – positive, TREND – negative.
~STRATEGY-no new call generated. (Hold longs with closing stop at 5339)
~stoploss for shorts at 5638.
~stoploss for longs at 5339.
******Trading system for NIFTY3d LMA- 3305, 3d HMA- 3500.
3d SMA- 3375, 8d SMA- 3452, 34d SMA- 4018.
~BIAS – negative, MOMENTUM – negative, TREND – negative.
~STRATEGY-no new call generated. (Hold shorts with closing stop at 3500)
~stoploss for shorts at 3500.
~stoploss for longs stopped out.
***Technicals
Nifty is in terminal phase of downtrend and now it seems that nifty will trade sideways in 3100-3500 range for some time.
Nifty is in process of intermediate bottom formation.
So far bottom is formed at 3100.
***Derivatives (October 16)
-Nifty (October) future premium increased to 20 points and around 4 lakh shares were added in open interest with increase in the cost of carry, indicating new longs at lower levels.
-Nifty call option add 12 lakh shares in open interest, whereas put option add 3 lakh shares in open interest. Thus open interest put-call ratio decreased to 0.73.
-Implied volatility has increased by 700 points(IVs around 65-70%) which indicate very high volatility in the coming days.
Nifty is in terminal phase of downtrend and now it seems that nifty will trade sideways in 3100-3500 range for some time.
Nifty is in process of intermediate bottom formation.
So far bottom is formed at 3100.
***Derivatives (October 16)
-Nifty (October) future premium increased to 20 points and around 4 lakh shares were added in open interest with increase in the cost of carry, indicating new longs at lower levels.
-Nifty call option add 12 lakh shares in open interest, whereas put option add 3 lakh shares in open interest. Thus open interest put-call ratio decreased to 0.73.
-Implied volatility has increased by 700 points(IVs around 65-70%) which indicate very high volatility in the coming days.
***Fund flow (October 14)
~FIIs net in Index fut. + 1207 cr, FIIs net in Stock Fut. + 538 cr,
~FIIs in Cash Market - 189 cr, Mut Funds in Cash Market - 261 cr
***total fund flow +1295 cr today & nifty was up by 28 points.
***Fund flow (October 15)
~FIIs net in Index fut. - 531 cr, FIIs net in Stock Fut. + 100cr
~FIIs in Cash Market - 841 cr, Mut Funds in Cash Market - 383 cr
***total fund flow – 1655 cr today & nifty was down by 180 points.
*** So far net fund flow of - 5877 cr in October series. (Nifty is also down in October series).
***Past fund flow~FIIs net in Index fut. + 1207 cr, FIIs net in Stock Fut. + 538 cr,
~FIIs in Cash Market - 189 cr, Mut Funds in Cash Market - 261 cr
***total fund flow +1295 cr today & nifty was up by 28 points.
***Fund flow (October 15)
~FIIs net in Index fut. - 531 cr, FIIs net in Stock Fut. + 100cr
~FIIs in Cash Market - 841 cr, Mut Funds in Cash Market - 383 cr
***total fund flow – 1655 cr today & nifty was down by 180 points.
*** So far net fund flow of - 5877 cr in October series. (Nifty is also down in October series).
-8071 cr in June series (-520),+6474 cr in July series (+18), -6641 cr in August series (-119), -6903 cr in September series (-104)& closed at 4110.(-15141 cr from May closing of 4835)
Happy trading and investing.
-Dr.Jignesh Shah
