Tag Archives: .CNXIT

SUBMINOR LONG CNXIT-SHORT NIFTY

By Orpheus | Published: 5 August, 2009
A new pair SUB MINOR LONG CNXIT-SHORT NIFTY starts tomorrow morning. Two previous pairs also close tomorrow. The first was SUB MINOR CNXIT-INFOSYS which closed without a change. The second was SUB MINOR LONG CNXIT-SHORT NIFTY which delivered 4% over 7 days. We have enclosed the value sheet for the pair which illustrates the potential [...]
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READING ALPHA

By Orpheus | Published: 26 July, 2009
This update on ALPHA INDIA will take you through the mechanics of trading or investing based on the product signals. The pair trading strategy is divided into three different time horizons viz. sub minor (2-3 days), minor (10-30 days) and intermediate (above 30 days). We will call the portfolio with the respective names. Every pair [...]
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INDIA OUTLOOK H209 – SHORT SENSEX, LONG NIFTY

By Orpheus | Published: 24 July, 2009
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. [...]
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THE ARBITRAGE CURVE

By Orpheus | Published: 22 July, 2009
This might look like a learning curve, but it’s an arbitrage curve for me. Pair trading in Indian markets is an exciting experience. Even as early as 2000 I remember working on cash-futures, futures-futures arbitrate sheets on the BRIDGE TERMINAL at the 24 floor of the Bombay Stock Exchange, teaching brokers how to execute riskless [...]
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INDIAN PAIRS: LONG NIFTY – SHORT NSEBANK

By Orpheus | Published: 1 July, 2009
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 [...]
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THE DOLLAR SENSEX

By Orpheus | Published: 25 June, 2009
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 [...]
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