I have been experimenting with pairs trading for quite some time now. I can see there is island gap reversal in kotakbank/Hdfcbank ratio chart. I don't know whether it is going to work but it will be interesting to see how it unfolds from here.
The trade you are supposed to take is Short Hdfc Bank Futures & Long Kotak Bank Futures.
The chart compares Auto Index to IT index, as we can see the valuation of Autos compared to IT has reached lows of 2008. What we get to know from this is that either Auto index is under priced or IT has become over priced. My bias is that auto sector investments would return quite good returns 3-4 years down the line.
What i am publishing is the ratio chart of Maruti to Hindunlever every time the bottom in Ratio chart of Maruti to HUL has coincided with bottom in Nifty & overall markets. The simple thought behind why this happens is that Maruti represents discretionary spend where as HUL is consumer staple stocks where you wont cut spending even if economy is doing worse. At...
Looking at the whole pharma space it seems all the stocks will breakout. I am betting on Lupin though. Momentum on MACD & Aroon Indicator both looking very positive on Weekly chart. Get Ready for long & sustainable uptrend in Lupin & even other pharma stocks.
JPYINR was taking a Support at 50-EMA through this rally that began In January, On Friday the pair closed below 50-EMA which is the sign that it is ready to give up some of it's gain & may fall back to is's support around 0.59
Momentum indicator on a weekly time frame is suggesting that Euro is going up but with decreasing momentum, In that case it is very high possibility that Eur/Usd pair will soon follow momentum on a higher time frame & start trending south. In addition long build up In Euro by Non-Commercials is at highest levels since 2009.