NIFTY - HCLTECH Pair Analysis

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End-of-day divergence (Standardized residual) is 3.24.
Half life of pair is 23.7.
Real time (live) divergence is calculating using following formula:
[hcltech_price - (0.0531 * nifty_price) - 2]/73.8

(where 2 is mean error and 73.8 is standard error)
Technical strength of NIFTY is 3.1. (Support & Resistance)
Technical strength of HCLTECH is 8.1. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)2.5. And exit positions when divergence becomes (+/-)0.0.
Stop Loss: Put your stop loss when divergence becomes more than 3.0 or less than -3.0. We suggest you always use stop losses.
Note: When you trade in futures, keep in mind the expiry date of futures as divergence might not end before expiry date.
Click here to see all recommendations for pair nifty-hcltech.
Analyse any other pair:

How to choose pairs?
Choose stocks from same sector/subsector.
Use stock with large market capitalization as first stock.

Charts

NIFTY Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 29, 2020 11042.2 7815825.0 217124.0 217124.0 11050.25
November 26, 2020 11062.9 486375.0 5712.0 5712.0 11050.25
December 31, 2020 11073.6 26775.0 1011.0 1011.0 11050.25
Lot size: 75.

HCLTECH Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 29, 2020 830.2 14455000.0 16465.0 16465.0 827.7
November 26, 2020 832.35 114800.0 165.0 165.0 827.7
December 31, 2020 834.2 8400.0 7.0 7.0 827.7
Lot size: 1400.
Click here for backtesting results.

NIFTY-HCLTECH Analysis with different time frames and thresholds

Time Frame 1year, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 82777.5022531
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 75719.3573532
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 63557.1710209
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 61303.5976362
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 58805.9993856

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