Archive for January 3rd, 2011

Alpha India EE - The Short portfolio

Today we are introducing the short portfolio. Although the market bias is still positive as Nifty is still completing the second wave up, we continue to look at a turn soon near 6,200-6,250 levels. A pending third impulsive wave down means good short opportunities and potential large moves down in the case of the current top performers. The Nifty Rieki also reached previous extremes and suggests a potential performance reversal near current levels.

We currently have three shorts in our list. Infosys is a top performer of the Technology sector. RSI momentum suggests an overextended structure, while a break sub key levels at 3,430 would further validate our negative view. Lupin’s subminor structure looks like a completing second corrective wave up with immediate resistances at 480-490 levels. Tata Motors has the same second corrective wave structure up, while the minor formation suggests a potential Double Top reversal pattern. Immediate resistances lie at 1,330, while the neckline supports lie at 1,280.

Enjoy the latest Alpha India.

Alpha is a daily strategy signal product that gives long only, short only, pair trading signals. Alpha is a numeric Ranking product based on TIME fractals. The signals are carried over minor (10-30 days) and intermediate (above 30 days) time frame. The signals are 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.

Naked and/or pair strategies are not riskless strategies. Time arbitrage portfolio legs should be risk weighted before any implementation. 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 Research products.

Coverage India: BSE500 traded stocks and Indian Indices.

Michesan Anna-Maria, the columnist for the WAVES.INDIA weekly and Head of India Research. Anna discovered her interest of markets immediately after completing her graduate studies in Economics. She followed it up with post graduate studies in corporate finance. A host of research work in behavioral finance, option strategies and quantifying market sentiment followed. Anna covers Indian equity and combines Elliott, Time Fractals and Time Analytics to deliver accuracy across time frames. To review some of her work, check out the annual India accuracy report 2009.