Market Trend Lab

CONJBNSASR triggered buy signal on 18th Oct 2012,  @11425 ...(spot value) ... one lot of BANKNIFTY  booked with gain of 100 points yesterday...and 2nd lot is   still open as one has to keep filter of 0.6% on CONJBNSAR (i.e. for today  11390 as stop loss ) for 2 days so as to give a survival chance to CONJBNSAR TRADE..  *** Hold 2nd lot till the CONJBNSAR gives reversal signal****

Buy 1 LOT OF SBI @  2276   AND  Sell 1 LOT OF Bankbaroda@ 811 ... CURRENT PRICE RATIO :  2.806 TARGET RATIO :  2.90-----2.95 STOP LOSS RATIO:  2.74 *** For timely Entry and Exit plz give ur mail and contact no at dare44uu@gmail.com........ Pair trading dairy one can see under 'Banking stocks' tab above... updated daily after trading hours... 'Pair trading strategy' one can read on left side of blog under 'reading gem'  *****

CONJBNSASR triggered buy signal today  @11425 ...(spot value) Now b ook one lot of BANKNIFTY  between 11500-11550 (Spot value) being resistance zone  (High made till now  11510 )  thereby given a gain of 75 +  points......  *** Hold 2nd lot till the CONJBNSAR gives reversal signal****

IMPORTANT POINTS FOR TRADING Banknifty is trading in a broad range of  11250 to 11550. Banknifty is trading in a triangle pattern within the channel.. breakout and breakdown level is 11420 and 11315 . CONJBNSAR for 18th oct 2012 is  11425. If it triggers than buy signal will be generated.  In daily chart Banknifty has made inverse head and shoulder pattern and also broken the neck line which gives target of  12500  in medium term.

17th OCt 2012 closing update of pair SBI_ALBK, SBI future closed @ 2223.60 and ALBK future closed @ 138.60 Current price ratio : 16.04   Pair profit : 4725 Target Ratio given : 16----15.90 also achieved during the market hours.. ======================== Today 17th oct , SBI future CMP @ 2235  and  ALBK future cmp @ 139 current price ratio : 16.07 Current Profit of Pair : 3850 one can book 3000+ profit in this pair  =========================================================== On 16th Oct 2012, pair strategy given was:-  Sell 1 LOT OF SBI @  2239   AND  BUY 1 LOT OF ALBK @  137.2 .... CURRENT PRICE RATIO :  16.31 TARGET RATIO :  16.00-----15.90 STOP LOSS RATIO:  16.53

Today just keep your eyes on 11400-11435 .....!!!!  as Levels such as agni and sar of day and week all are between this range.  

SELL 1 LOT OF SBI @ 2239   AND  BUY 1 LOT OF ALBK @ 137.2 .... CURRENT PRICE RATIO : 16.31 TARGET RATIO : 16.00-----15.90 STOP LOSS RATIO: 16.53

Pair Trade of UNION BANK_VIJAYA BANK is in profit of 3600 ..........!!!!!!!!! On 12th oct 2012 , Sold 1 LOT OF UNIONBANK @ 205.65 AND Bought 1 LOT OF VIJAYA BANK @ 56.85 .... Entry PRICE RATIO : 3.617 TARGET RATIO : 3.40-3.45 STOP LOSS RATIO: 3.75 NOW(15th oct 2012)  Unionbank future (Lot size 1000) CMP @ 204.05 i.e. in profit of 1600 and VIJAYABANK FUTURE(Lot size 4000) now CMP @ 57.35 i.e. in profit of 2000 ....   Thereby pair is in net profit of 3600 .......Right now price ratio is 3.559 ... one can book profit... *** Pair trading dairy one can see under 'Banking stocks' tab above... updated daily after trading hours... 'Pair trading strategy' one can read on left side of blog under 'reading gem' *****

IMPORTANT POINTS FOR TRADING In above chart, one can see that From 24th sep 2012, Banknifty is trading in a broad range of 11250 to 11550 (ignore freak transaction day). On 4th oct 2012 it tried to brokeout from range and made high of 11685 but on very next day freak transaction has loosen the confidence of rally and now again banknifty came back in that broad range. So when the banknifty is trading in a range its quit possible that it triggers stop loss or even give a whipsaw in CONJBNSAR. But than one has to keep following and believing in own strategy or system because there by only one can track the big rally. Now range has become very narrow. For today Range will be  11340-11390  to 11430-11490 . Break down from range will take to 11270---11225---11130 and break out on upside will take to 11550-11590.

Volatility has become the hallmark of financial markets. We see benchmark indices posting decent gains in one trading session and lose those gains in other trading session. In such a scenario, traders and money managers can adopt a market-neutral strategy called pair trading, which is very popular with hedge funds, investment bankers and professional money managers It is market-neutral strategy as its profitability is not dependent on the direction of the market. It yields profits whether market moves up or down, or remains sideways. Also, risk in this strategy is very low. In 1980s Gerald Bamberger popularized this strategy. The strategy monitors performance of two historically correlated securities in same sector or industry. In simple terms pair trading involves buying one stock and simultaneously selling another stock in same industry that follow each other when they diverge from the normal pattern; with the expectation that the normal pattern will soon resume.