LET THE MARKET TELL WHO WE ARE

Sometimes, in unfavorable circumstances it becomes bit difficult to take a directional view on entire market or on a particular asset. But in financial markets we have seamless opportunities even at the times when your systems are not able to take a directional view on an asset or when fundamental and technical are not streamlined. Ratio trading is one of those opportunities. In past we suggested a ratio trade in gold and silver while gold silver ratio was at 120 and today this ratio stands at 76. Means people who traded this opportunity could bought 120 kg of silver by selling 1kg gold and now they can buy 1kg of gold just by selling 77 kg silver means this opportunity has earned you 43kg silver. Today again I am back with my analysis on BANK NIFTY and NIFTY ratio. Current Bank nifty- Nifty ratio stands at 1.94. Areas of 1.90 has served as good support for this ratio since 2012. However, this ratio has hit 1.62 during 2013 but was not able to spend much time in that territory and ...

NIFTY spot has closed at 10831.40, and facing stiff resistance near 10931 zones which is the high placed on Monday keeping this index under pressure. Nifty has been witnessing a nice uptrend on weekly chart from low 6825.80 which was placed during March 2016. A classic bearish head and shoulder pattern is emerging on weekly chart and this pattern gets its confirmation on break of the neckline which is near 10000 zones. If this pattern gets confirmed then it will open the doors for a retest to flip support which stands near 8900 zones. Price is struggling to hold above 50 weeks SMA which equals to 200 SMA on daily chart. Price resistance near 200 days SMA plays a significant role. 10 weeks SMA has already given a bearish cross below 50 weeks SMA and this SMA on weekly chart equals to 50 days SMA on daily chart. These developments on SMAs suggests that a death cross has already happened in this index. Price has also violated a rising trend line and recently it has experienced res...