ALPHA.INDIA – BEST SELL STOCKS

When six of the top ten sectors are showing a turn down on performance cycles, prices are near multi year highs for many majors, mid cap and small cap are top performers, metals are bouncing on the gold historical upmove and commodity upside, VIX is in a secular downtrend for S&P500 and NIFTY, we don’t have to think twice regarding possibility of a potential downside. Short positions should take into consideration price confirmations. The ALPHA long only – short only signal is just negative on ACC. The long signals are closed on Infosys and CNXIT. We mentioned last time that FMCG, health care are defensive sectors and their outperformance is not encouraging for the overall market. SBI remains the top Sensex stock along with Tata Motors at the second place. Rising OIL prices and BSEOIL bottoming performance cycle is not positive for auto majors. Auto components are negatively influenced by Oil prices. Grasim and LNT pair returned 14% in 10 trading days. We are expecting Infosys – Nifty, Nifty – ACC pair to initiate soon. Regarding the best sell stocks, read ahead. Enjoy the latest ALPHA.INDIA

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ALPHA is a pair trading, long only – short only strategy and Numeric Ranking product based on TIME fractals. Time arbitrage, Time Triads, Time fractals are terms coined by Orpheus Research. The signals are carried over three different time frames viz. sub minor (2-3 days), minor (10-30 days) and intermediate (above 30 days). This is a daily signal product. The signals will be illustrated through tracker and running portfolios. Alpha can be used by fund managers for relative allocations, traders for leverage bets and high net worth clients for selective trades. This is a part of the time triads analytics developed by Orpheus Research.

TIME ARBITRAGE portfolio has five pairs now viz. Reliance – Nifty, CNXIT-Nifty, TCS-Nifty, CNXIT-Infosys, Nifty-ONGC. The above tracker will be updated on a daily basis. The freshly opened trades will have the shortest holding periods. The type of trade will be depicted in the degree i.e. sub minor (2-3 days), minor (10-30 days) and intermediate (above 30 days). The legs should be risk weighted before any implementation. We are assuming a running stop loss of 4% per traded pair. CNXIT/INFOSYS means LONG CNXIT, SHORT INFOSYS. This also means +A-B. When the pair inverts to INFOSYS/CNXIT, it would mean SHORT CNXIT, LONG INFOSYS meaning -A+B.

LONG ONLY, SHORT ONLY portfolio covers NIFTY, CNXIT, NSEBANK, RELIANCE, INFOSYS, ONGC, CIPLA, ICICI BANK, HDFC BANK, TISCO.

STOP LOSS AND EXITS are activated at 4%

Please feel free to mail us for any clarifications. *This is a strategy product. Long Short strategies are not riskless strategies. Please mail us for a detailed working or consult a local financial risk manager to execute these pairs. For more details please subscribe to the ORPHEUS TIME ANALYTICS research products.

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Author: Orpheus | Date: 18 October 2009 | Comments (0)

Categories: Indian Pairs and Assets