Posts tagged ‘.BSEAUTO’

Alpha India EE - BSE Auto special

Today’s Alpha India report carries a special case on the Indian Auto sector. We illustrated here the Jiseki ranking of a few Auto stocks. As we can see, all of them are best performers and fall in the higher range of the ranking (above 70%). Tata Motors is at the top, followed by Bajaj Auto, M&M and Ashok Leyland. Along with BSEAUTO, these four stocks are above 90% rankings. We illustrated the technical cases on the respective stocks on slide 2. The BSEAUTO Jiseki cycles turned negative as prices reversed and continue to suggest further negativity for the Indian Auto sector.

Alpha is a daily strategy signal product that gives trading and investment signals. Alpha is a numeric Ranking product based on TIME fractals. 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. Alpha is a part of the time triads analytics developed by Orpheus Research.

Coverage India: CNX100 traded stocks and Indian Indices.

Michesan Anna-Maria, 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.


Alpha India Early Economic - BSE Auto Special

Rieki and Numeric Ranking are great filtering tools when it comes to finding sell or buy opportunities. The latest report carries two special cases on the top performer BSE Auto stocks, Cummins and Bajaj Auto (slide 4 and 5). The updated Numeric Ranking and pair grid (slide 1) also confirm our case. The respective stocks are best shorts, along with Federal Bank, Canara Bank, Bank of Baroda, Shriram Transport Finance, Lupin, BSE Consumer Durables, Corporation Bank and Dr Reddy’s. The best buys are Punj Lloyd, Housing Development and Infrastructure, Suzlon, Tech Mahindra, GMR Infrastructure, India Bulls, Jaiprakash, SAIL, Reliance Capital and Reliance Infrastructure.

The updated Rieki portfolio carries two shorts and four longs. We closed Tata Motors, Bank of Baroda, Cummins and one contract of Bajaj Auto on the short side. We are left with another contract of Bajaj Auto and Federal Bank. On the long side we have Reliance, Tech Mahindra, Suzlon and Reliance Power which are still worst performers and should outperform in the next few weeks. Our overall view on the Indian market remains negative with a potential subminor bounce.

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.


INDIA OUTLOOK H209 - SHORT SENSEX, LONG NIFTY

If Short S&P500, long DOW is absurd, what you are going to read below should be shocking. We will be taking you through pairs and performance cycles (a term coined by us) on the Indian capital markets. Performance cycles work because of time fractals.

This is what we said in our annual India outlook 2009.

“Starting Aug 1992, Sensex has shown an average 40 month cycle. Three of the 40 month cycle make a decade cycle. The first decade cycle ended in 2002 and the second decade cycle should end somewhere around 2012. We are now in the last 3.3 year cycle up. Since the markets have erased most of the gains made since the decade up cycle started in Sep 2001, the expected bounce should be choppy and time consuming. We won’t be surprised if prices retest Oct lows or breach them marginally early Q2 2009. And this means selective stock picking and better to minimize market exposure by doing quantitative long short strategies. 13,000 – 15,000 is an achievable high for Sensex in 2009. BSE Metals was the worst performing sector of the year at -72%. We expect it to deliver better returns, atleast for Q1 2009. We also expect BSE Oil to outperform Sensex over Q1 2009. Indian markets still lack instruments for doing advanced quantitative strategies. But long BSE 500 - short Sensex also seems an attractive pair for Q1 2009. Don’t get too much into the negative mode despite all crisis and majority is foolish talk. Try looking top down.”

What happened? If you look at the twelve composite and sector indices (Nifty, Metals, Oil, Health, FMCG, Technology, Real Estate, Power, BSE500, Capital Goods, Consumer Durables, Auto) a majority of them retested Oct lows and breached it marginally. Most of the market lows happened near 3-12 MAR window, 15 days before anticipated Q2 2009 started. We talked about a SENSEX target of 13000-15,000. Sensex hit a high of 15,600 on 14 Jun. The top loser BSEMETALS was a recommended sector not only fell marginally less than SENSEX in the first quarter (31 Dec 2008 – Mar 2009 low), but was the top performer for the year (31 Dec till date). Despite the OIL crash, our recommended pair lost 2% against Sensex. The BSE500 vs. SENSEX pair delivered 11% from 31 Dec. We clearly cautioned against too much negativity. SENSEX was up 67% for the year. We wrote about the Tech Reversal here on 26 Jan. After a month CNXIT turned up from a low of 1993 to 4076 (up 105%).

Coming back to pairs, the question which might surprise any conventional thought is that how did a notional pair LONG BSE500, SHORT SENSEX work? 20% annualized returns may not be very exciting for a leveraged forex trader but they can be significant for a mutual fund, especially if the returns come with lower risk. How could we know that the broad market could outperform the blue chips as early as the start of the year? Performance cycles are easy to spot and work with, if you believe Time Fractals and cycles work and exist. We can illustrate pair performance between Nifty, Cnxit, NSE Bank, the few tradable Index futures and between stock futures of sector peers like Reliance and ONGC etc.

Other interesting observations are that two respective periods saw shifting polarities, like a classic performance cycles. The performers of the first period became underperformers of the other. The first period underperformers against Sensex viz. BSE Real, BSE Consumer Goods, BSE Capital Goods became performers in the other period. While the first period performers (Till Mar) against Sensex viz. BSE Oil, BSE FMCG, NIFTY, Health care shifted polarity and underperformed Sensex (Post MAR). The best part is that some pairs delivered more than Sensex on an annualized basis. Sensex delivered 136% from MAR lows, while BSE Metals - Sensex and BSE Real – Sensex pair delivered 145% and 173% respectively on annualized basis.

Apart from the investment strategy studying pair performance cycles can also give many cues regarding market perspective. There is a limit to which BSE Metals can outperform the blue chip 30 stock index. If BSE Real, BSE Metals, and BSE Capital Goods have already outperformed Sensex by 100%, 90%, 50% respectively since MAR lows where do you think this outperformance can go? The outperformers of today will be the underperformers of tomorrow.

The BSE500 outperformance has topped against Sensex and broad market underperformance against blue chip is not encouraging if you are just looking at the Sensex portfolio. We repeat the best of 2009 is nearly over and any upside from here should barely reach double digits (less than 10%) for the 12 indices we discussed above. When you have 100% annualized performances under your belt in half a year, you don’t haggle about the last 10%. We will review if markets breach this 10% push up from here.

Are pairs really that good? Are time fractals tradable? Are pairs really offering more returns for per unit of risk? Is risk really associated with price or time? These are a few questions you need to answer before you reach implementation stage and comprehending how to make money buying Sensex against NIFTY or vice versa.


WAVES.INDIA - PREFERRED B OR ALTERNATE 4

The main question now is how deep will be the ongoing retracement? If we are looking at a forming B, get ready for levels much below 4,000. While if we are looking at a 4 wave, 4,000 key supports should hold. Why is 4 an alternate for us?

There are a few reasons. First the 2 wave is not a classic Zigzag. Second, the 3 wave up can be subdivided as an A-B-C and not just as a clear impulse. Third, SENSEX performance cycles are suggesting weakness against DOW and other Global Indices. To expect a 4 here would mean strength not weakness.

About Head and Shoulder, neckline breach and retest. These are conventional interpretations and real markets have no rule regarding neckline retests. For us the only head and shoulder that matters is the one on time. We will write about it shortly.

Meanwhile we have added the performance tracker which illustrates the performance between NIFTY and NSEBANK. While the markets were crashing the last few days, the pair made a net performance of 6%. We have also enclosed likely down targets and key levels.

Enjoy the latest WAVES.IND

* This is a perspective product and not a strategy product. Long Short strategies are not riskless strategies. Please mail us for a detailed working or consult a local financial risk manager.

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ORPHEUS INDIA RESEARCH

WAVES.IND is a perspective product published on Tuesday and Thursday. The report highlights Indian Stock Market top sectoral Indices and Sensex (BSE 30) viz. BSEOIL, BSESC (Small Cap), BSEMC (Mid Cap), BSEHC (BSE Health Care), BSEPHARMA (Pharmaceuticals), BSECG (Capital Goods), BSEBANK (Banking), CNXIT (Technology), BSEFMCG (FMCG), BSEAUTO (Auto) etc.. The product also covers all the 30 Sensex components. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.

COVERAGE: REUTERS RICS. INDICES. .BSEBANK, .BSEOIL, .NSEI, .BSECG, .BSESN, .BSEAUTO, .CNXIT, .NSEBANK, CITc1, IFc1, .NSEBANK

ORPHEUS RESEARCH AT REUTERS - UNITED KINGDOM

ORPHEUS RESEARCH AT REUTERS - USA


WAVES.INDIA - WHY DO BANKS FALL?

This question may have many answers based on when you ask it. The question may have no meaning if it was asked at the market top at BSEBANK 12,678 (20 Jan 2008). It may evoke a shrug if asked at Oct 2008 lows (BSEBANK 3,601). Now that BSEBANK has retraced almost 61.8% of the losses from historical highs (29 Jun 2009 8,575) the answer may at best be mixed. more….


INDIAN PAIRS: LONG NIFTY - SHORT NSEBANK

Why do BANKS fall? This question may have many answers based on when you ask it. The question may have no meaning if it was asked at the market top at BSEBANK 12,678 (20 Jan 2008). It may evoke a shrug if asked at Oct 2008 lows (BSEBANK 3,601). Now that BSEBANK has retraced almost 61.8% of the losses from historical highs (29 Jun 2009 8,575) the answer may at best be mixed.

Performance cycles on the other hand can give an answer at all times. BANKS can underperform NIFTY, means fall against NIFTY cyclically. For example NSEBANK fell against NIFTY three times since July 2007 for an average 140 days. If you zoom in a bit more coming from weekly to daily charts, the number of times NSEBANK underperformed NIFTY or fell against NIFTY increases by a factor of three to nine times with an average time period of 46 days. There is another interesting thing that happened during this time when BANKS were underperforming NIFTY, broad markets were falling or stagnating on all the three occasions. What does this mean? This means that if we study performance cycles (TIME FRACTALS) we can not only isolate performers but we can also understand when the broad market might be ready to turn.

NSEBANK seems ready to underperform again against NIFTY. Empirically this means that chances of a broad market stagnation or negativity might be in. We have illustrated here the pair performance cycles (INTERMEDIATE and MINOR) between NIFTY and NSEBANK. Both time frames suggest an impending cycle low which could mean the end of NIFTY’s underperformance against banks. A clear turn from respective lows should see NSEBANK underperforming NIFTY for more than a few months. This also means that LONG NIFTY– SHORT NSEBANK could be an interesting pair to watch for the next 140 or 40 days. Now 140 days is a long time which takes us well into the final quarter of 2010.

Financials react fast to economic changes and hence carry clues for market perspective. This validates our overall negative view on the Indian market, which would be challenged only if prices move above the highlighted key resistances. We have carried Elliott updates on the main indices and ANTICIPATED AND HAPPENED cases on BSE REALTY and BSE POWER.

Enjoy the latest WAVES.INDIA

* This is a perspective product and not a strategy product. Long Short strategies are not riskless strategies. Please mail us for a detailed working or consult a local financial risk manager.

Login for orpheus.asia member’s area here.

ORPHEUS INDIA RESEARCH

WAVES.IND is a perspective product published on Tuesday and Thursday. The report highlights Indian Stock Market top sectoral Indices and Sensex (BSE 30) viz. BSEOIL, BSESC (Small Cap), BSEMC (Mid Cap), BSEHC (BSE Health Care), BSEPHARMA (Pharmaceuticals), BSECG (Capital Goods), BSEBANK (Banking), CNXIT (Technology), BSEFMCG (FMCG), BSEAUTO (Auto) etc.. The product also covers all the 30 Sensex components. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.

COVERAGE: REUTERS RICS. INDICES. .BSEBANK, .BSEOIL, .NSEI, .BSECG, .BSESN, .BSEAUTO, .CNXIT, .NSEBANK, CITc1, IFc1, .NSEBANK

ORPHEUS RESEARCH AT REUTERS - UNITED KINGDOM

ORPHEUS RESEARCH AT REUTERS - USA


THE DOLLAR SENSEX

There are stories about the inverse correlation between SENSEX and the US Dollar Index (USD). The same stories which talk about inverse correlation can also explain perfect correlation, but there is something missing here. First, perfect correlation does not last. Second, if instead of absolute prices if we compare changes between prices, the idea of correlation adorns a new meaning. For us at Orpheus it is not about positive or negative correlation, it is about the cycle of correlation.

The question of when DOLLAR strengthening against SENSEX will start or vice versa is more important than the obvious fact that dollar strengthening affects Sensex inversely. SENSEX pushed 17% higher in dollar terms compared to INR. This was a result of INR weakness against the dollar that was reflected in SENSEX returns.

According to performance cycles, an asset will always outperform or underperform the other asset. This means that there will always be an inverse correlation between any pair of assets if you are comparing performances. So what matters is really not correlation, but which of the assets is outperforming the other and WHEN.

In continuation of the above view we continue to look lower on SENSEX. The current downmove looks like an impulse which should push prices back till open gap levels.

We highlighted a Head and Shoulders pattern on SENSEX and Double Top pattern on NIFTY and BSE OIL. The current report also carries ANTICIPATED AND HAPPENED cases on NIFTY, CNXIT and BSE REALTY, as well as time oscillators updates. Our overall Indian market view remains negative.

Enjoy the latest WAVES.INDIA

* This is a perspective product and not a strategy product. Long Short strategies are not riskless strategies. Please mail us for a detailed working or consult a local financial risk manager.

ORPHEUS INDIA RESEARCH WAVES.IND is a perspective product published on Tuesday and Thursday. The report highlights Indian Stock Market top sectoral Indices and Sensex (BSE 30) viz. BSEOIL, BSESC (Small Cap), BSEMC (Mid Cap), BSEHC (BSE Health Care), BSEPHARMA (Pharmaceuticals), BSECG (Capital Goods), BSEBANK (Banking), CNXIT (Technology), BSEFMCG (FMCG), BSEAUTO (Auto) etc.. The product also covers all the 30 Sensex components. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.

COVERAGE: REUTERS RICS. INDICES. .BSEBANK, .BSEOIL, .NSEI, .BSECG, .BSESN, .BSEAUTO, .CNXIT, .NSEBANK, CITc1, IFc1, .NSEBANK

ORPHEUS RESEARCH AT REUTERS - UNITED KINGDOM

ORPHEUS RESEARCH AT REUTERS - USA


THE DOLLAR SENSEX

 

There are stories about the inverse correlation between SENSEX and the US Dollar Index (USD). The same stories which talk about inverse correlation can also explain perfect correlation, but there is something missing here. First, perfect correlation does not last. Second, if instead of absolute prices if we compare changes between prices, the idea of correlation adorns a new meaning. For us at Orpheus it is not about positive or negative correlation, it is about the cycle of correlation.

According to performance cycles, an asset will always outperform or underperform the other asset. This means that there will always be an inverse correlation between any pair of assets if you are comparing performances. So what matters is really not correlation, but which of the assets is outperforming the other and WHEN.

 

The question of when DOLLAR strengthening against SENSEX will start or vice versa is more important than the obvious fact that dollar strengthening affects Sensex inversely. SENSEX pushed 17% higher in dollar terms compared to INR. This was a result of INR weakness against the dollar that was reflected in SENSEX returns.

In continuation of the above view we continue to look lower on SENSEX. The current downmove looks like an impulse which should push prices back till open gap levels.

We highlighted a Head and Shoulders pattern on SENSEX and Double Top pattern on NIFTY and BSE OIL. The current report also carries ANTICIPATED AND HAPPENED cases on NIFTY, CNXIT and BSE REALTY, as well as time oscillators updates. Our overall Indian market view remains negative.

Enjoy the latest WAVES.INDIA

ORPHEUS INDIA RESEARCH WAVES.IND is a perspective product published on Tuesday and Thursday. The report highlights Indian Stock Market top sectoral Indices and Sensex (BSE 30) viz. BSEOIL, BSESC (Small Cap), BSEMC (Mid Cap), BSEHC (BSE Health Care), BSEPHARMA (Pharmaceuticals), BSECG (Capital Goods), BSEBANK (Banking), CNXIT (Technology), BSEFMCG (FMCG), BSEAUTO (Auto) etc.. The product also covers all the 30 Sensex components. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.

COVERAGE: REUTERS RICS. INDICES. .BSEBANK, .BSEOIL, .NSEI, .BSECG, .BSESN, .BSEAUTO, .CNXIT, .NSEBANK, CITc1, IFc1, .NSEBANK

ORPHEUS RESEARCH AT REUTERS - UNITED KINGDOM

ORPHEUS RESEARCH AT REUTERS - USA

 

 


WAVES.INDIA - THE 13 WEEK PAUSE IS HERE

 

After 13 week of uninterrupted rise SENSEX has finally hit some resistance. Has it? Though 13 is a Fibonacci number with some significant symmetry what is more relevant here is that markets can not rise uninterrupted. We also had a small body indecisive candle last week, which makes the current week’s black body start not easy to ignore. The wide open gaps at 12,500 are also strange attractors that won’t let SENSEX rest in peace. TIME CYCLES that we have highlighted on prior occasions are non confirming and negative. Both preferred and alternate SENSEX counts suggest we are indeed at the top of the road for SENSEX for multi weeks even if we look at the current up move as a nine legged or W-X-Y-X-Z intermediate corrective up.

 

Other negatives include filled open gaps by CNXIT, failure swing at BSEAUTO, non confirming momentum on BSEOIL, BSE Health Care, BSEAUTO, first cracks at intermediate cycle top on CNXIT, cycle highs on BSEPOWER and a host of performance cycle updates.

The SENSEX VS. DOW pair has reversed suggesting SENSEX underperformance against DOW. If DOW will fall, SENSEX will fall more. SENSEX underperformance VS. GOLD, if Gold will fall, SENSEX will fall more. SENSEX underperformance VS. FTSE, if FTSE will fall, SENSEX will fall more. The latest report also carries an update on our open pair CNXIT VS. INFOSYS. We continue to hold LONG Infosys view against CNXIT.

The only positive seems the BSEBANK, which is still stuck at 8,000. Financials still seem to be holding on. Pauses are wishful thinking. Markets don’t always rise and pause, they also fall in cyclical precision.

 

Enjoy the latest WAVES.INDIA

 

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ORPHEUS INDIA RESEARCH

WAVES.IND is a perspective product published on Tuesday and Thursday. The report highlights Indian Stock Market top sectoral Indices and Sensex (BSE 30) viz. BSEOIL, BSESC (Small Cap), BSEMC (Mid Cap), BSEHC (BSE Health Care), BSEPHARMA (Pharmaceuticals), BSECG (Capital Goods), BSEBANK (Banking), CNXIT (Technology), BSEFMCG (FMCG), BSEAUTO (Auto) etc.. The product also covers all the 30 Sensex components. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.

 


COVERAGE: REUTERS RICS. INDICES. .BSEBANK, .BSEOIL, .NSEI, .BSECG, .BSESN, .BSEAUTO, .CNXIT, .NSEBANK, CITc1, IFc1, .NSEBANK

 

ORPHEUS RESEARCH AT REUTERS - UNITED KINGDOM

ORPHEUS RESEARCH AT REUTERS - USA


WAVES.IND - FIRST SIGNS OF INTERMEDIATE TOPPING

 

ORPHEUS INDIA RESEARCH

 

WAVES.IND. is a perspective product published on Tuesday and Thursday. The report highlights Indian Stock Market top sectoral Indices and Sensex (BSE 30) viz. BSEOIL, BSESC (Small Cap), BSEMC (Mid Cap), BSEHC (BSE Health Care), BSEPHARMA (Pharmaceuticals), BSECG (Capital Goods), BSEBANK (Banking), CNXIT (Technology), BSEFMCG (FMCG), BSEAUTO (Auto) etc.. The product also covers all the 30 Sensex components. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.

 


COVERAGE: REUTERS RICS. INDICES. .BSEBANK, .BSEOIL, .NSEI, .BSECG, .BSESN, .BSEAUTO, .CNXIT, .NSEBANK, CITc1, IFc1, .NSEBANK

 

ORPHEUS RESEARCH AT REUTERS - UNITED KINGDOM

ORPHEUS RESEARCH AT REUTERS - USA