PE RATIO NIFTY http://www.investwel.com/HistorialNFPE-11.

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What can we learn from this PE Concept ? We can learn from history that we do not learn from History This is true for almost 95% of the long term investors all over the world . They do not learn things ,they do not do any research , they do not go and read blogs or tons of informational sites , they just want tips from others and make money . the mathematical expectation of that kind of investing is negative and cant work for long term. Lets develop a simple concept of PE based Investing . here it is BUY Signal : Once PE crosses below 13 . When NIFTY PE reached levels of 13 , start accumulating the stocks and invest your money in 4-5 installment over some months. Make sure that markets are going up and down and moving in a range . If PE crosses below 11 , its a must BUY !! SELL Signal : Once PE crosses above 20 . Book the profit once NIFTY PE crosses above 20 , Dont book all profits at once . Book it in parts . PE crossing above 20 does not mean markets has to fall , its only an indication that markets may be oversold and now smart people will starting selling there shares to mad public . Short sell the shares once PE and Markets start falling down from PE levels of 20 . If PE crosses above 25 , its a must SELL !!

PUT CALL RATIO http://www.nseindia.com/ OVERBOUGHT ABOVE 1.40 OVERSOLD BELOW 0.80 What Does Put-Call Ratio Mean? A ratio of the trading volume of put options to call options. It is used to gauge investor sentiment. The put-call ratio is a popular tool specifically designed to help individual investors gauge the overall sentiment (mood) of the market. The ratio is calculated by dividing the number of traded put options by the number of traded call options. As this ratio increases, it can be interpreted to mean that investors are putting their money into put options rather than call options. An increase in traded put options signals that investors are either starting to speculate that the market will move lower, or starting to hedge their portfolios in case of a sell-off. VIX - CBOE Volatility Index BETWEEN ABOVE 28-34 MEANS BUY SIGNAL THE VIX IF PROPEL ABOVE 35 THAN IF MAY INDICATE LONG TERM BEARISH TREND BELOW 18 MEANS SELL SIGNAL The first VIX, introduced by the CBOE in 1993, was a weighted measure of the implied volatility of eight S&P 100 at-the-money put and call options. Ten years later, it expanded to use options based on a broader index, the S&P 500, which allows for a more accurate view of investors' expectations on future market volatility. VIX values greater than 30 are generally associated with a large amount of volatility as a result of investor fear or uncertainty, while values below 20 generally correspond to less stressful, even complacent, times in the markets. http://www.nseindia.com/marketinfo/vix/hist_vix_data.jsp

OPEN INTEREST

Price Rising

Volume Rising

Open Interest Rising

Interpretation Market is Strong

Rising Falling

Falling Rising

Falling Rising

Market is Weakening Market is Weak

Falling

Falling

Falling

Market is Strengthening

What Does Open Interest Mean? 1. The total number of options and/or futures contracts that are not closed or delivered on a particular day. 2. The number of buy market orders before the stock market opens. A common misconception is that open interest is the same thing as volume of options and futures trades. This is not correct, as demonstrated in the following example:

-On January 1, A buys an option, which leaves an open interest and also creates trading volume of 1. -On January 2, C and D create trading volume of 5 and there are also five more options left open. -On January 3, A takes an offsetting position, open interest is reduced by 1 and trading volume is 1. -On January 4, E simply replaces C and open interest does not change, trading volume increases by 5.

FII and DII Data http://www.moneycontrol.com/india/stockmarket/foreigninstitutionalinvestors/09/26/acti vity/FII http://www.moneycontrol.com/stocks/marketstats/fii_dii_activity/index.php http://www.bseindia.com/mktlive/market_summ/categorywise_turnover.asp ADVANCED DECLINE RATIO http://www.bseindia.com/mktlive/adv_dec/groupwise.asp
Advance/Decline Line - A/D This indicator is used by many traders to confirm the strength of a current trend and its likelihood of reversing. If the markets are up but the A/D line is sloping downwards, it's usually a sign that the markets are losing their breadth and may be setting up to head in the other direction. If the slope of the A/D line is up and the market is trending upward then the market is said to be healthy.