Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Look Above the Balance & Fail in Nifty 500 Suggests Possible 10%-15% correction

37 sec read

Nifty 500 aka CNX500 trading between 8400-10000 levels since June 2017. Recently Nifty 500 for some time struggled around the psychological reference 10000 levels. Broken outside the upper balance, however, failed to continue sustaining above the balance indicating possible tired investors.

Look above the balance and fail is a critical sign of momentum exhaustion and bring a potential target destination of another side of the balance which roughly comes around 8400-8650 levels.

PE Divergence in Nifty 500

There is a PE ratio divergence seen. The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings.

Fundamentally such divergence is an indication that PE ratio slows down is seen though Nifty 500 hits ATH. Divergence simply indicates Earnings are increasing however it is not reflecting in the price.

Psychological reference 10000 becomes the immediate resistance. Investors are likely to take cautious decision especially those who invest in large-cap and mid-cap segments. Short term & Midterm trend turns on the downside and likely to face immediate pressure at higher levels.

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

What is Retail Digital Rupee?

The retail digital rupee will be introduced on December 1 as part of a pilot programme, the Reserve Bank of India (RBI) stated in...
Rajandran R
1 min read

TradersKart – One Stop Shop for Traders

TradersKart offers One-Stop E-commerce Solution for all the traders, where traders will get access to their trading needs. Traderskart provides the necessary tools required...
Rajandran R
56 sec read

[Free Course] Mini Certification on Options Trading in Indian…

It is a long-pending request from the Marketcalls Readers This Mini-Course on Options Trading in Indian Markets gets you the basic building blocks about...
Rajandran R
1 min read

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More