QUANT SYSTEM TRADE UPDATE - 08.12.21

From the desk of Capt.D.Ganesh Raja

Dear Friends,

I was hoping to get some time in between ship visits to update on the blog at a present crucial juncture and I got that little time, waiting for sailing around midnight.

Nifty closed at 17469.75 today. Presently market is placed at 20EMA and also a 5-wave correction in daily charts seems have completed. Two major trendlines have been broken to the downside in the weekly charts in addition, some daily oscillators are showing divergence. Putting all this together and running the filters, it seems likely that we see a bounce till 17700. This kind of a pullback rally is normal as a part of bigger correction. A sharp move overshooting by a couple of hundred points than the predicted levels is not unusual though. Risk reward is not favourable for going long, except people who have a reliable intraday trading system.

I won’t be able update you all an exact shorting level but 17700 to 17800 would be good zone to look for shorts in the market with a stop loss of 18070. A careful daily synthesis is required when trading markets in this scenario but I have to work with the constraints I have. If this level is reached, I will enter the trade, in my Trade Recommendation Sheet as if short trade has been executed.

Without trying to sound prophetic the final level of 14500 to 15000 in Nifty seems likely spread over next few months, based on system readings.

GOLD: System gave a buy signal in Gold on 22.10.21, at 47,797.0, with a stop loss at 47120.0. Continue to hold gold. There are indications that Gold is about to make a stellar move in next few weeks.

Target1 – 50685.0, Target 2 – 54541.0, Leverage 0.30x.

Minimum profit potential – 6%. Asset allocation profit potential – 1.8%.

Minor trend: Down, Intermediate trend – Neutral, Long-term trend – Neutral with upward bias.

Note for reading this report:

Note1: The stop losses are on end of day basis

Note2: When trade recommendation is given around a certain price, it means that the trade may be taken the next trading day or if a price zone is given for taking a trade then trade has to be taken on the day price reaches within that zone.

Note3: A separate excel sheet is attached to view the performance of the recommendations, which also reduces the task of individually reporting the performance of each trade recommendation. Viewing the excel sheet “TRADE RECOMMENDATION LOG” will be self-explanatory. Also in this sheet Trade recommendations which are still active are marked.

When signals are triggered mid-week, that is updated in log sheet and covered in the weekend report, due to paucity of time.

EXISTING TRADE RECOMMENDATION OVERVIEW

Gold is the only trade recommendation now and has been covered above.

NEW TRADE RECOMMENDATION

NONE

TOTAL LEVERAGE OF ABOVE NEW TRADE RECOMMENDATIONS: NA

COMBINED PROFIT POTENTIAL FOR ABOVE TRADES: NA

TIME WINDOW OF TRADES: 7 DAYS TO 30 DAYS.

TOTAL LEVERAGE INCLUDING UNCLOSED POSITIONS AS PER PREVIOUS RECOMMENDATION: 0.30X

RETURNS TILL DATE SINCE 04.07.20 : 57.78% (AS OF WEDNESDAY 08.12.21 CLOSING)